How to Transfer a Car Title After Divorce in North Carolina

If your divorce decree or separation agreement awards a jointly titled vehicle to one spouse, the title must be updated at the NCDMV to reflect the new sole owner. The divorce decree alone doesn't change the title — you need to physically visit an NCDMV office and complete the transfer paperwork.

The good news: divorce-related vehicle transfers in North Carolina are exempt from the standard 3% highway use tax that normally applies to title transfers. But you need to know the right form to claim that exemption.

What You Need for the Transfer

Visit an NCDMV license plate agency with these documents:

From the departing spouse (the person giving up the vehicle):

• The current vehicle title, signed on the back by the departing spouse (the "seller" line)
• If there's a lien, the lienholder must provide a lien release first

From the receiving spouse (the new sole owner):

• Form MVR-1 (Application for Title) — available at the NCDMV office or online
• Form MVR-613 (Affidavit of Non-Highway Use Tax) — this is the form that claims the divorce exemption from the 3% highway use tax
• A certified copy of the divorce decree or separation agreement showing the vehicle was awarded to you
• Valid photo ID
• Proof of NC auto insurance in your name

Fees:

• Title transfer fee: $56
• Highway use tax: $0 (exempt with MVR-613)
• New registration (if needed): varies by vehicle weight

The Highway Use Tax Exemption (Form MVR-613)

North Carolina's highway use tax is 3% of the vehicle's value — on a $30,000 vehicle, that's $900. But transfers between spouses or former spouses as part of a divorce settlement are exempt under N.C.G.S. § 105-187.6.

To claim the exemption, complete Form MVR-613 at the NCDMV office. You'll check the box for transfers "pursuant to a decree of divorce" and attach your certified decree showing the vehicle award. The NCDMV clerk processes the exemption on the spot.

Without the MVR-613, the NCDMV will assess the full 3% tax. Don't assume the clerk will apply the exemption automatically — bring the form and your certified decree.

What About the Auto Loan?

Like mortgages, transferring the title doesn't affect the loan. If both spouses signed the auto loan, both remain liable to the lender even after the title is in one name.

The receiving spouse must refinance the auto loan into their name only to release the departing spouse from the debt. Until refinancing is complete, the departing spouse's credit is linked to the vehicle's payment history.

If the vehicle is paid off, the transfer is straightforward — no lienholder involvement needed.

Insurance Updates

Before completing the title transfer, the receiving spouse needs auto insurance in their name covering the vehicle. The NCDMV requires proof of insurance to process the transfer.

If you were on a joint auto insurance policy, contact your insurer to:

• Remove your ex-spouse from the policy (or be removed from theirs)
• Ensure the vehicle is listed under the correct owner
• Update your coverage limits and deductibles based on your new situation

Getting your own policy before the title transfer visit prevents delays at the NCDMV.

The North Carolina After-Divorce Checklist includes a vehicle transfer worksheet covering the MVR-1, MVR-613 exemption, insurance switchover timeline, and loan refinancing coordination — all specific to North Carolina's process.

See more North Carolina guides →