Expert: Equality in Marriage Institute - 5/13/2006

Question
Hello,

My name is Vicki.  My husband and I are divorcing.  We are at the point of determining how we are going to split up property.  I own a jeep that is paid for and the title is only in my name.  He owns a CRV that he has a loan on and has only owned maybe 2 years.

He feels that I should pay him whatever trade-in value is on my jeep ($10,000.00).

Does this sound fair?

Thank You very much,    Vicki Hall

Answer
Dear Vicki,

One question to answer first would be if he contributed anything towards your jeep? If not then perhaps you can offer to pay a small amount if he can't afford the payments on his own. If he did contribute $ towards your jeep then perhaps offer him the amount he contributed in return. Or you could trade some other asset to make up for the cost difference.
I find it helpful to consider what if the tables were turned and you owed money on your jeep? Would you ask your spouse to pay you the trade in value for his CRV?