Sell the car after a separation. One offer, on the record.

Who has to sign when you’ve separated

Start with the paperwork, not the argument. Three records say something about a car, and after a separation they often point at different people: the registration, the loan contract and the receipt from when you bought it.

The rego is the one most people check, but it doesn’t prove ownership. The NSW Government’s guide to buying a used car says the certificate of registration “shows only the person who takes responsibility for the vehicle”. The receipt is what shows who bought it.

For the sale itself, plan on everyone named on the registration signing. Two places spell this out. In the ACT, the transfer and notice of disposal on the back of the rego certificate are signed by the seller or sellers and the buyer. In WA, a jointly owned vehicle needs the paper MR9 form rather than an online transfer, and the seller has 7 days to notify the Department of Transport and Major Infrastructure. Elsewhere, ask your transport authority how it wants a two-name sale lodged before you set a date.

Our guide to selling a car in joint names covers who signs in each state.

Paying out a joint loan and splitting what’s left

A loan in both names is usually the hardest part. Moneysmart is direct about shared loans: “You are both responsible for repaying the debt.” If one of you stops paying, the other has to pay the full amount. That stays true whatever you agree between yourselves, until the loan is paid out.

Selling the car is often the cleanest way to close it. The lender is paid first, out of the sale. What’s left is your equity, and how you divide it is your agreement to make. Before you talk about a split:

• Ask the lender for a payout figure. It’s often different from the balance in your banking app, because it can include interest to the payout date and any fees in your contract. Our guide to car loan payout letters explains what’s in one.
• Ask the lender what it needs from each borrower to release the figure and authorise the payout.
• Put the payout figure and the offer into the car equity calculator, so you’re both looking at the same numbers.

When you sell to us, we deal with your lender directly to pay out the loan, then pay any equity. It usually takes 2 to 3 business days to settle. If you owe more than the car is worth, the negative equity has to be covered before settlement. On a joint loan that shortfall belongs to both of you, so agree who is putting it in before you accept an offer. Our page on selling a car under finance walks through each step.

A price and a paper trail you can both see

A common worry is that one person sells the car cheaply, or quietly, and the other only hears the number later. The answer is a price neither of you set, and a record of every figure.

• Both of you hear the offer. If you can, have both of you on the valuation call, or on speaker. If not, agree beforehand who makes the call and that they’ll pass the offer on straight away.
• The price is on paper. We prepare the sale paperwork, and it records the car and the agreed price. Everyone who signs sees the same figure.
• The money is traceable. Any loan is paid straight to the lender, and the deposit and balance go into a bank account. Agree in writing whose account that is and how the other person receives their share.
• Keep copies. Hold on to the payout letter, the sale paperwork and the bank records for each payment. Together they show what the car sold for and where every dollar went.

Agree these points in writing, signed by both of you, before you accept an offer.

When one of you has the car

After a separation the car often sits with one person while the other is still on the papers. The inspection happens after you accept, at a time and place that suits you, and we arrange collection anywhere in Australia once you confirm the funds have cleared.

A few things are easy to miss when a car has been shared between two homes:

• Every key. Spare keys often end up with the other person. Get them back before the inspection.
• Insurance. Keep the policy active until the car is collected, even if it’s only in one person’s name.
• Tolls. Take out any e-tag and remove the plate from the toll account, which may be in either name.
• Phones and connected apps. Unpair every phone, clear saved addresses and remove the car from any app account linked to it, whoever set it up. Our guide to wiping personal data from your car has the steps.
• The notice of disposal. In most states the seller lodges it after the sale. With two names on the rego, check who has to sign it.

If you can’t agree, or there are court orders

If your ex is on the registration or the loan and won’t take part, don’t try to sell around them. A family lawyer, Legal Aid or a Family Dispute Resolution service can help you reach an agreement first.

If the car is only in your name, the transport authority treats you as the seller. That doesn’t settle who is entitled to the money. Moneysmart notes that a property settlement can include vehicles, along with property, savings, super, debts and loans. If yours isn’t finalised, get legal advice before you sell, and keep the paper trail described above.

If you already have court orders or a financial agreement, follow them, and check with your lawyer what they allow before you accept an offer.

Where to get legal and financial help

We don’t give legal, tax or financial advice. Start here:

• Legal Aid or a community legal centre for free legal help, and a family lawyer for advice or representation. Moneysmart’s separation checklist says to get legal advice on how to formalise any property agreement, because time limits apply.
• A Family Dispute Resolution provider if you need help agreeing how to divide things.
• A financial counsellor if a joint loan has become hard to manage. The National Debt Helpline on 1800 007 007 offers free financial counselling.
• 1800RESPECT on 1800 737 732, 24 hours a day, if you feel unsafe or are being pressured to sign. It’s the national domestic, family and sexual violence counselling service.

Moneysmart’s guide to getting divorced or separating covers the wider money steps.

Selling the car to us

A separation doesn’t change how a sale works with us. It can just mean more people at the signing. Tell us on the call whose names are on the registration and on any loan, where the car is, and anything your agreement or orders require.

Sell Your Car Australia is run by Autohaus Australia Pty Ltd, NSW licensed motor dealer MD 077404, and our valuer has priced cars since 1992. You get a genuine offer by phone from a licensed dealer, not an online estimate, and a deposit often the same day. The balance is paid into your bank account, and the car is collected only after you confirm the funds have cleared. We prepare the sale paperwork and help with the transfer of ownership. Usually no roadworthy or safety certificate is needed when you sell to us. Rules differ by state, and we confirm on the call.

We buy cars, utes, SUVs and 4WDs 2021 or newer with 100,000 km or less. If yours is older or has more kilometres, send it through anyway and we’ll tell you straight away if we can help. The valuation is free, with no obligation and no fees taken out of the offer. Call 1800 73 55 73.