South Carolina Divorce Vehicle Division

Vehicles Are Simpler Than the House — Until They're Not

Cars and trucks are typically the second-largest physical asset in a South Carolina marital estate, behind real estate. In most cases, each spouse keeps the vehicle they primarily drive, and the court adjusts the overall property split to account for any equity difference. But several practical pitfalls make vehicle division more complicated than it looks on paper.

Title Ownership vs. Loan Liability

The same principle that trips up homeowners applies to vehicles: transferring the title doesn't transfer the loan. If a car is financed in both names, the lender's contract survives the divorce decree. The Family Court can order one spouse to make the payments, but if they default, the lender can pursue any borrower or co-signer who remains liable — and report the delinquency to their credit. A loan in only one spouse's name generally does not make the other spouse personally liable to that lender, although the Family Court may allocate the debt between the spouses.

The clean solution: refinance the vehicle into the sole name of the spouse keeping it, or pay off the loan from marital funds as part of the settlement. If neither is possible, the settlement agreement should include an indemnification clause requiring the responsible spouse to hold the other harmless from any default.

The And/Or Title Trap at SCDMV

South Carolina vehicle titles use two joint-ownership designations, and the distinction is critical:

"And" titles (John Smith AND Jane Smith): Both owners must sign any transfer document. Neither spouse can sell, trade, or retitle the vehicle without the other's signature. This protects against unilateral transfers during the divorce process.

"Or" titles (John Smith OR Jane Smith): Either owner can independently transfer, sell, or retitle the vehicle. A spouse with an "or" title can sell the car without the other's consent or knowledge.

Check your title designation immediately. If you're concerned about a spouse transferring a vehicle during the separation, request a restraining order at the temporary hearing prohibiting the sale or transfer of marital assets.

How to Transfer Title After the Divorce

To transfer a vehicle title as part of the divorce settlement, take the following to an SCDMV office:

• SCDMV Form 400 (Application for Certificate of Title)
• The current vehicle title, signed by the transferring spouse
• A certified copy of the Final Order of Divorce
• $15 title fee
• Valid photo ID

If the vehicle has an active lien, no change to the owners or the "and"/"or" relationship on the title can be made without involving the lienholder. Ask the lienholder and SCDMV what documentation is required; the loan liability still must be addressed separately.

Dividing Bank Accounts

Bank accounts follow a more straightforward path. Joint accounts are divided by agreement or court order — typically 50/50 unless the overall equitable apportionment calls for a different split. The practical steps:

Close joint checking and savings accounts. Divide the balance according to the settlement agreement. Each spouse opens individual accounts at their own financial institution.

The timing matters. Closing joint accounts immediately upon separation prevents either spouse from draining the balance. If you can't close the account (some banks require both signers), at minimum document the balance at the date of separation and monitor for unauthorized withdrawals.

Sole-titled accounts — in one spouse's name only — are still marital property if opened during the marriage with marital funds. The titling doesn't protect them. The burden shifts to the titled spouse to prove the funds are separate (premarital savings, inheritance deposited without commingling).

Valuation Date and Depreciation

South Carolina's filing date is the key cutoff for what is included in the marital estate, not the date of separation. For vehicles, preserve NADA, Kelley Blue Book, or comparable market evidence around the filing date and be prepared for the court to address valuation based on the evidence. Vehicles depreciate rapidly — a car that was worth $28,000 at separation may be worth $22,000 by the time the complaint is filed a year later.

If one spouse is driving the vehicle during the separation, document mileage, condition, and any unusual wear or damage. The court can consider that evidence when valuing and allocating the vehicle.

The South Carolina Divorce Financial Split & Asset Division Guide includes asset inventory worksheets that cover vehicles, bank accounts, and other personal property — with fields for title type, lien status, and current market value.

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