Car Title Transfer After Divorce in Alabama

Updating Your License Doesn't Update Your Title

One of the most common misconceptions in Alabama: getting a new driver's license with your post-divorce name does not update the name on your vehicle title. These are separate records maintained by separate entities. The driver's license is through ALEA. The vehicle title is through the county licensing office. You must update each one independently.

Owned-Outright Vehicles

If the vehicle is paid off and you hold the physical title, bring the following to the county licensing office:

• Your updated Alabama driver's license
• The certified copy of the divorce decree (showing which spouse was awarded the vehicle)
• The physical title, signed on the back by the transferring spouse

The county licensing office processes the title transfer and issues a new title in your name. Fees vary by county.

If the divorce decree specifies the vehicle by VIN, make, and model, the transfer is straightforward. If it uses vague language like "the marital vehicle," the county may request additional documentation clarifying which vehicle is meant.

Financed Vehicles

Financed vehicles are more complicated because the lienholder — the bank or finance company — holds the physical title. You can't walk into the county office with a title you don't possess.

Step 1: Contact the lienholder and explain the situation. Request that they mail the physical title to the county licensing office in the county where the vehicle is registered.

Step 2: Obtain a signed authorization letter from the lienholder on official company letterhead, authorizing the county to change the name on the title. The county will not process the change without this letter.

Step 3: The name on the title must match the name on your driver's license exactly. If you've changed your name, update your license first.

If the auto loan is in both spouses' names, the retaining spouse should refinance the loan in their name alone. Like joint credit cards, the divorce decree's assignment of the car payment doesn't release the other spouse from the loan contract. If the retaining spouse stops paying, the departing spouse's credit takes the hit.

Out-of-State Titles

If the vehicle was titled in another state, Alabama requires a physical VIN inspection before issuing an Alabama title. Drive the vehicle to the county licensing office — an inspector examines the VIN plate and verifies it against the title documents. This applies even if the vehicle has been in Alabama for years but was never re-titled.

Insurance Changes

Split joint auto insurance policies as soon as the decree is entered. Each spouse needs their own individual policy. If one spouse was the primary policyholder, the other needs to secure coverage immediately — a gap in coverage can result in a license suspension if the county discovers the vehicle is uninsured.

Notify your insurer about the divorce. Rates may change based on the policyholder's solo driving record, address change, or removal of multi-car discounts. Some insurers require a copy of the decree to process the policy split.

The Complete Toolkit

The Alabama After-Divorce Checklist tracks vehicle title transfers alongside driver's license updates and insurance changes — including the lienholder coordination steps for financed vehicles — so nothing stalls because a prerequisite was missed.

See more Alabama guides →