Summarize:

As part of the divorce, you need to decide who will keep the car, and who will be responsible for the payments, if there are any. Usually, these are the same. But after a divorce, things can get different. For example, you may agree that one party will continue paying the loan and insurance, while the other party will get full ownership of the car. Make the changes to the title to fit your agreement. In most cases, a transfer is treated as a sale, and the state is likely to charge a sales tax when the title is changed. However, in the event of a divorce, some states may waive this tax if you present a divorce order along with the application for the new title. You will have to check with the registry in your state to see what applies to you. Suppose the original title had two individuals' names on it, say a parent and child. At some point, the parent chooses to give the car completely to the child as a gift. This will require having the parent remove his or her name from the title as described in this article. Complete the form as a transfer, with the sale price as $0. This may avoid a sales tax or use tax. Many people choose to donate vehicles, particularly older ones, to charities. This will allow them to take the value of the car as a tax deduction, as long as the organization is a recognized 501(c)(3) charity. If you are doing this, complete the title the same as any other transfer, but put the name of the charity or it authorized representative as the "buyer," with a sale price of $0. You will then give the completed paperwork to the charity. The charity will be responsible for completing the work with the DMV in order to transfer ownership. In case one owner on the title of a car passes away, the remaining owner will need to consider whether additional papers are needed, or even if any additional steps are necessary. If the title was in both spouse's names, the surviving spouse can generally submit the original title with a copy of the death certificate. If the vehicle was left to someone in a will, then the executor of the estate will need to submit an affidavit or certificate along with the title. In any event, it will probably be advisable to get a probate attorney involved to make sure that the transfer is completed properly.
Change the title to match your divorce settlement agreement. Treat a gift as a transfer and correct the title accordingly. Correct the title to show a donation to charity. Decide what additional forms may be needed in case of a death.