The best way to shield a vehicle from property division is to enter into a marriage agreement. This approach was emphasized by Sergey Radko, a lawyer representing the Freedom of Choice auto movement, in an interview with socialbites.ca.
Radko explained that a prenuptial agreement can designate which spouse keeps a vehicle when the car is tied to either partner through registration. If the vehicle was bought during the marriage, it is considered joint property and would be subject to division if the couple parts ways. In that case, the price of one spouse’s share could be recovered through a settlement with the other party, he noted for socialbites.ca.
He added that a marriage contract can safeguard not only the current assets but also future ones, offering a plan for how newly acquired property should be handled through potential changes in the family structure.
When a vehicle is purchased before the marriage, it is generally treated as the personal property of the individual who bought it, unless it has undergone substantial improvements during the marriage that used joint funds, such as repairs following an accident, Radko illustrated. This nuance helps clarify how ownership is judged once a relationship ends.
Moreover, if the car was registered to a relative of one spouse at the time of purchase, it is not regarded as jointly acquired property since it does not officially belong to both spouses. In a divorce, the other spouse would typically not have a claim to it, Radko concluded.
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