How to Transfer a Car Title After Divorce in New York

If your divorce settlement awards a vehicle to one spouse, the title and registration need to be transferred into that person's name alone. New York requires an in-person visit to the DMV, but the process is straightforward — especially once you know about the tax exemption that saves you hundreds of dollars.

What You Need for the Title Transfer

Gather these before heading to the DMV:

• The original vehicle title signed on the reverse by the transferring spouse (the person giving up the car)
• Form MV-82 (Vehicle Registration/Title Application)
• Form DTF-802 (Statement of Transaction for Sales Tax) from the NYS Department of Taxation and Finance
• Proof of insurance — a new policy in the acquiring spouse's name, or the existing policy updated to show them as the primary insured
• A certified copy of your Judgment of Divorce — the DMV may request this to verify the transfer is divorce-related

The Sales Tax Exemption (Form DTF-802)

This is the step most people miss. Normally, transferring a vehicle title in New York triggers a sales tax assessment based on the car's fair market value. But transfers between ex-spouses pursuant to a divorce decree are exempt from sales tax.

To claim the exemption, the acquiring spouse must complete Form DTF-802 and indicate that the transfer is being made pursuant to a Judgment of Divorce or separation agreement. Without this form, the DMV will charge you the full sales tax — which on a $25,000 vehicle could be $1,000 or more depending on your county.

Step-by-Step at the DMV

1. The transferring spouse signs the back of the original title (the "Assignment of Title" section).
2. The acquiring spouse completes Form MV-82 and Form DTF-802.
3. Both go to the DMV, or the acquiring spouse goes alone with the signed title and divorce decree.
4. The DMV issues a new title in the acquiring spouse's name and updates the registration.
5. New registration fees apply (varies by county and vehicle weight).

If the original title has been lost, the transferring spouse must first apply for a duplicate title using Form MV-902 ($22.50 fee) before the transfer can proceed.

Update Your Insurance

Vehicle insurance must be updated as part of the transfer. The acquiring spouse needs their own policy listing them as the primary policyholder, and the departing spouse needs to be removed.

If you were on a joint auto insurance policy, contact your insurer to either split the policy or cancel it and start a new individual policy. You cannot transfer title without showing proof of insurance in the acquiring spouse's name.

Don't cancel insurance on a vehicle you're giving up until the title transfer is complete. If there's a gap in coverage between the cancellation and the transfer, you're driving uninsured — which is a violation in New York and leaves you personally liable in an accident.

If There's a Loan on the Vehicle

If the car has an outstanding auto loan, the lienholder must release the lien before the title can be transferred. This typically means paying off the loan or refinancing it into the acquiring spouse's name only. The lienholder's name appears on the title as the first lien holder — the DMV cannot transfer a title with an unresolved lien.

Your divorce decree may assign responsibility for the remaining loan payments, but the lender isn't bound by that agreement. If your name is on the loan and your ex stops paying, the lender will pursue you regardless of what the decree says.

What About Leased Vehicles?

Leased vehicles can't be title-transferred in the same way because you don't own the vehicle — the leasing company does. Contact the leasing company to discuss transferring the lease to one spouse, buying out the lease, or returning the vehicle.

For the complete vehicle transfer checklist — plus worksheets for insurance updates and loan coordination — see the New York After-Divorce Guide.

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