Car


#1

My husband and I have separated. We were married for 4 months. His car was in his name, however, I used part of my 401 (K) to pay off his car a week before I left. Prior to me paying it off. I made monthly payments on his loan from our joint checking account. The car is not in my name. Do I have any grounds on a. getting any of that money back or B. is that car considered part mine?
I assume that he just got lucky on this one.

Thank you.


#2

When you used marital funds to pay down his separate debt, thereby increasing the value of his asset (the car), the source of funds rule applies. This rule basically means that even though hek gained title to the car before the marriage, acquisition of the car was ongoing over the course of the marriage as it was paid for. The amount paid for over the marriage is compared proportionally to the amount paid before the marriage to the value of the car now (as it has likely depreciated) to determine the marital portion, which is then divisible. There may be a couple ways to approach the payment you made of your separate assets towards his car loan, and the approach would likely be based on the intent of the parties. It may be considered a gift to the marriage, but then it would also be divisible in equitable distribution.