Company car and divorce

[NotReallyFunctioning]

Just about to start separation/divorce procedings.

So far STBXH and I are fairly amicable about finances and there isn't anything too complicated however he has a company car that I use for me and the kids. We also have a very crap, old, runaround car which we use only a little bit.

His car is a couple of yrs old and was probably worth £15k+ new but it is on a lease that has 2 yrs more to run so he can't give it back. He is planning to give it back at the end of the lease and when he does he will get money as a company car allowance and will also pay less tax than he pays now - i.e. he will be quids in. The little runaround car is only worth £200, if that, and is 15yrs old so no good as a reliable car for me and kids really.

So I just want to know if his car will get seen as his asset or as a joint asset? If it is his then to even things up can I ask that he buys me a reliable car from his split of the money? Or if it is joint asset should we should buy a better 2nd car for me together out of our joint pot before it gets split? Or can he just give me some cash to offset the car and I keep the old car and decide for myself when to get a newer car?

At the moment I use his company car as our family car all week and obviously once we have separated I will have to use the little car and also cough up the (likely to be quite high) running costs so it seems rather unfair if he just keeps the new, reliable car - however I am beginning to see that 'fair' is a rather subjective term in divorce!

Thanks for any advice.

I doubt it, it's part of his job, and I'm guessing the company can withdraw it at any time.

Tbh you say he'll be "quids in" if he takes a cash payment in a few years but in my experience to buy a car of a standard that a company may expect (if he is using it for work purposes), and to tax, insure, MOT and maintain it rarely results in that.

Sorry, probably not want you wanted to hear...

"So I just want to know if his car will get seen as his asset or as a joint asset?"

I'm not a lawyer but I can't see that a company car will be seen as an asset at all. Surely it belongs to his employer and is part of his remuneration package in the same way his salary/holiday/other benefits are, and a car allowance will be later?

Could you look at it a different way? He gets paid £x salary and then many people get car allowance of eg £6k. Some take this as cash, but some use it for a car. Find out if that is the case, and then refer to those figures in the settlement.

Ah yes, I didn't think of it as not really being his!

He doesn't use it for work (commutes by train) - it is part of his remuneration package so yes I guess it isn't an asset, that makes sense.

But because at the moment he doesn't take the money it seems a bit strange to try and use the cash figure in a settlement as he doesn't actually have that money. However, he will get it in future so ignoring it seems unjust too! And although he will need a car he will get £350 a mth to pay for a his car and I will be paying out for an old banger to be repaired - yet he only uses his at weekends and I need a car all week for the kids. So frustrating but maybe that's just how it is.

Neither of us is arguing about what to do (I'm not trying to force him to buy me car!) - I just wanted to know how this kind of thing is included when working out figures for a settlement.

Seems like using the cash allowance value will be the way to go. I am worried that there is little enough cash to go round as it is, so including 'future' cash that doesn't exist right now might not be possible but at least we can use that in our first figures.

Thanks everyone.

I disagree - if he has the cash instead then the figure he pays you in child maintenance will be higher so you will gain that way.

the company car will not be an asset for the divorce - after all, its not his!
however you could take some other approaches (I) as above, argue that his "expected income" (this is basis for settlement) will either include a car or cash for it and so this should be taken into account (ii) when you present your "needs" statement include an equivalent car for yourself so this is included in any settlement. include both capital cost (but keep reasonable ie an good second hand car) and running costs
trouble is of course if you both don't have cash to buy a car for you and the kids then there is an issue.,,, if you are not getting legal advise I would btw. you can still agree between yourselves but a lawyer could advise you on what points would be considered reasonable by the court etc

How amicable is the split? Could you actually sit down with him and discuss replacing the old car with another (reasonable) vehicle. Don't talk about who gets what, or what is fair, but approach it from the point of having a reliable vehicle to drive the kids, and making sure it is safe and doesn't need extensive repair? A good father would ensure their children are in a safe vehicle.