How are car collections treated by the court in divorce?

Who Gets the Car in a Divorce?

High-net-worth individuals often possess vehicles that are for much more than transportation; these might be collectibles, luxury items, or investments.

In a UK divorce, cars - like other assets - must be disclosed as part of the financial disclosure process and may be considered part of the matrimonial pot. Whether the vehicle is jointly owned, registered in one party’s name, or used primarily by one spouse, the court will assess its value and relevance when dividing assets.

Are Cars Considered Matrimonial Assets?

Yes. If a car was purchased during the marriage and used by either party or the family, it is likely to be treated as a matrimonial asset. This means it can be included in the overall financial settlement.

However, if you own collectibles that were:

• Owned before the marriage
• Inherited or gifted solely to one party
• Used exclusively for business or personal purposes

…they may be considered non-matrimonial, though the court can still include it if needed to meet financial needs.

How Do Courts Decide Who Keeps the Car?

Some, all or none of a car collection may be marital property, and if the collection is part of the marital estate, then the car-enthusiast spouse may choose to retain the collection by, in effect, buying out the other spouse’s interest.

However, in the situation where there is only enough in the matrimonial pot for the needs of the spouses, then the car collection may need to be sold, and the proceeds divided.

Properly assessing the value of your collection is crucial to reaching a fair settlement. If you have classic cars, you may need help from an expert valuer to determine your property’s value and ensure the legitimacy of your valuation.

Vardags’ team of top divorce lawyers delivers a bespoke legal service to HNW and UHNW individuals, their families, and businesses.  

If you’re considering or going through a divorce with a car collection involved, we can help. Click below for a free initial consultation with one of our expert divorce solicitors. 

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