Car PCP deal during separation

ron1977

Hi all, hoping I could get some advice over an issue I have.

My wife and I are going through a separation she moved out of the marital home around 2 months ago, but we were effectively separated in April.

I have no issue in separating our marital assets 50/50 and wish to try and do this amicably (even though I am not having much joy there currently)

I am about to enter into a car PCP deal in my name approx 5k deposit, but wanted to understand if the car becomes a marital asset or is the deposit amount that theoretically was saved during our marriage or neither?

Best

TBagpuss

A court loks at the assetss they are at thetim any order is made, and are over all looking at what is fair.

If you are buying the car with a loan, then the car will be an asset, but you will also declare the loan, so it's actually the 'equity' which is relavant.
If it is lease/buy arrangmetns where you don't own the car til theend, the car won't be an asset as it doesn't belong to you, but the court can take into accoubnt the fact that you have had £5K of the matrimonial assets .

For negotiations you should probably treat it as a £5K asset on your side of the split, either way.

mark5

I found buying a new car not long before my divorce benefited me.

For example you pay 5000 deposit and take 16000 finance.

At point of divorce they will want a car part ex, we buy any car etc type valuation plus a finance settlement value.
You’ll probably find theres no equity in the car to split but you have the benefit of the new car for the monthly payment.

I also spent a lot of money on decent furniture for my new house which was valued at pennies for divorce purposes, this money in the bank would have been 60% to my wife 40% to myself though.