To avoid liability, how married couples should title their cars

Chip: Husband and wife both have each of their cars in their own name, and the title, it's not and/or, they're separate, for liability issues. Question-- If I die, how does my wife sell my car?

Attorney Tom Olsen: Okay. Let's back up for a minute and say this-- In the state of Florida, if you have a car accident, the person that you hurt can sue both the driver, that's you, and the owner. If that car title is in both names, it means they can sue both a husband and wife. For that reason, sometimes a husband will take the car that he drives mostly and put it in his name only, and the wife will take the car that she drives mostly and put it in her name only.

That way, if the husband has a terrible accident, he's underinsured, the person that he hurts can only sue him as the driver, and him as the owner. In the State of Florida, when you sue just one of the spouses, you cannot touch any assets that are owned by both of those spouses, so it makes you judgment-proof. That's why you did that, chip, and I approve. That's a good move. The next thing is that cars, by their nature, don't go through probate.

Chip, if you passed away, your wife could go down to the tag and title office with a car title and your death certificate, and they will retitle your car into her name, no probate required. We use that most often when mom and dad pass away, and they leave the kids behind. The kids can go to the tag and title office with the title, mom and dad's car title, their death certificates, and retitle into the kids' names. It does not require probate to transfer titles to cars, boats, motor homes, RVs, you name it. Chip, does that answer your question for you?

Chip: Okay. Yes. Physically, she's got to get that retitled piece of paper first, then sell it.

Tom: You got it. Exactly right, Chip.

Chip: Thank you very much. Appreciate it. Thank you.

Tom: You're very welcome. Yes. She would have to go down to the tag and title office with a title, in your name, your death certificate, a copy of your will, they'll retitle it in her name, and then she could turn around and sell that car.

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