Issues often arise when leased vehicles come up during a breakup of a marriage. An Orange County family law attorneycan help answer any questions related to this. A lease is considered an asset, because a person can use it. The agreed upon payments are considered liability.
True Leases vs. Lease Purchases
An Orange County family law attorney can explain the difference between true leases and lease purchases. In a true lease, the vehicle is eventually returned to the owner. Under a lease purchase, the person who leased the vehicle keeps it when the contract expires. What separates the two types of lease is the amount of money paid at the end of the contract. A small final payment, such as $10, indicates a lease purchase. If the final amount is thousands of dollars, it probably wasn’t meant for purchase.
An Orange County law attorney can explain that generally, true leases can’t be considered in a marital estate because the ability to use the vehicle is counterbalanced by the required payments. Orange County family law attorneys will also inform you that it is typically handled this way in many family courts. Lease purchases are treated similarly to other vehicle purchases. In this situation, the automobile is valued and treated as an asset in terms of marital property. The liability is calculated using the buyout figure and the number of remaining lease payments.
Call Orange County Family Law Attorneys for Assistance
Depending on the type of lease, some leased automobiles can be factored into a marital estate. For legal assistance, call Orange County family law attorney Bethanie Fanti at 714-505-3108.