How to Transfer a Car Title After Divorce in Rhode Island

When a Rhode Island divorce decree awards a vehicle to one spouse, the other spouse's name stays on the title until the receiving spouse takes it to the DMV. Driving on a title that still carries your ex-spouse's name means they remain liable for the vehicle — and can theoretically claim ownership of it.

The transfer is straightforward if you have the right forms and know about the sales tax exemption.

The Sales Tax Exemption You Can't Afford to Miss

Rhode Island normally charges a 7% sales or use tax on vehicle transfers, calculated on the NADA Clean Retail book value — not the sale price. On a vehicle valued at $20,000, that's $1,400 in tax.

Divorce-related transfers between spouses are fully exempt from this tax. But you have to prove it with Form T-333-1 (Sales or Use Tax Exemption Certificate — Motor Vehicles). Mark the form to indicate the transfer is incident to a divorce. Without this form, the DMV charges the full 7%.

What You Need at the DMV

The receiving spouse brings:

1. Signed original title: The transferring spouse signs the back as the seller; the receiving spouse signs as the buyer. If both parties can't appear together, signatures must be notarized.
2. Form TR-1 (Application for Registration): Completed by the receiving spouse.
3. Form T-333-1: Completed and signed to claim the tax exemption.
4. Certified copy of the divorce decree: The DMV needs proof the transfer is court-ordered.
5. Active Rhode Island auto insurance: In the receiving spouse's name, covering the vehicle.

Fees

• Title transfer: $53.50
• Registration update: $8.50
• Sales tax: $0 (with Form T-333-1)

Total: approximately $62.00, compared to $1,400+ without the exemption on a $20,000 vehicle.

The Lien Problem

If the vehicle has an active loan, the DMV cannot process a title transfer. The financing bank holds the title, and they won't release it or remove a borrower without either:

• Full payoff of the loan
• Refinancing the loan in the receiving spouse's sole name
• A written permission letter from the lender authorizing the transfer

If the settlement agreement requires your ex to refinance the vehicle loan, build that deadline into the agreement and track it. If they miss it, your remedy is a contempt motion in Family Court.

Multiple Vehicles

If the settlement divides multiple vehicles, repeat the process for each one. Each vehicle requires its own Form TR-1, Form T-333-1, and title transfer fee. Schedule a single DMV visit with all paperwork organized to avoid multiple trips.

The Rhode Island After-Divorce Checklist includes a vehicle title transfer card with pre-filled form references and a step-by-step DMV checklist.

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