For you to legally drive on the road, the car must be registered and have a title, otherwise, you will face the consequences if stopped by law enforcement agencies.
However, during car registration, you have two options: register the car in your name or add your spouse’s name to the registration.
Newly married couples who recently acquired a car may decide to have both their names on the title, therefore, what are the benefits of having two names on a car title?
The benefits of having two names on a car title are:
- It gives both names equal rights and ownership of the car
- They both share responsibilities and costs associated with the car
- Either of them can sell the car
- It makes estate planning easier when one of them dies
- It may increase the resale value of the car
- The other can easily own the car without probation
- It leads to easier access to insurance benefits
- It protects the interest of both owners
Can You Put Two Names on a Car Title?
Yes, you can two names on a car title.
However, you can do this based on joint tenancy with the right of survivorship where both individuals have equal ownership rights to the car, and if one owner passes away, their ownership interest automatically transfers to the surviving owner.
You can also do this on tenants in common where both individuals have a shared ownership interest in the vehicle, but they do not necessarily have equal ownership.
Each owner can specify their ownership percentage, and if one owner were to pass away, their share of the car would pass according to their will or state laws, rather than automatically transferring to the other owner.
Benefits of Having Two Names on a Car Title
The benefits of having two names on a car title are:
1. It Gives them Equal Rights to the Vehicle
If you and your wife’s name are on a car title, it means you both own the car and have equal legal rights to the vehicle. This allows both of you to use, sell, or transfer the vehicle with the consent of the other owner.
The advantages of this are enormous, especially in situations where both owners need to access or use the car regularly.
If she wishes to drive the car without you in the passenger seat, she won’t be delayed by police officers questioning her about the ownership of the car, visa vis. It makes driving easy.
2. It Ensures Proof of Ownership
As reiterated earlier, having two names on the title can serve as additional proof of ownership, which can be useful in cases of disputes or when dealing with law enforcement agencies during a stop-and-search event.
3. Shared Responsibilities and Costs Associated with the Vehicle
When two names are on the car title, they share the responsibilities and costs associated with the vehicle. This includes maintenance, insurance, registration, and any loans or financing obligations. It can help divide the financial burden, which can be beneficial for a family or a couple.
If the car breaks down, or the ABS and brake are damaged, the wife doesn’t have to wait for the husband to repair the car or replace the brake fluid.
Since she’s also the owner of the car, she can decide to fix the car herself. The same goes for when there is a lien on the vehicle. Both owners can share the payment to avoid repossession.
4. It Simplified Estate Planning
Another benefit of having two names on a car title is simplified joint ownership.
Having two names on a car title can simplify estate planning and make it easier. For example, no one is praying for the death of his spouse but in case it happens, the car passes to the surviving owner without going through probate.
The benefit you get from this is the time it saves you to start processing probate to legally drive the car. It also saves you money and stress.
5. Any of the Owners Can Sell the Car
Joint ownership allows for greater flexibility when it comes to selling or transferring the car. Either owner can sell the car. This flexibility can be useful in various situations.
For example, if one of the owners is not around and the car is up for sale, the other owner can comfortably sell the car.
Nevertheless, depending on the clause on the car title (e.g., if the title has “or” “and”) on it, the car can be sold without the other owner being present.
If the name on the car title is Kenedy Williams “or” Katrine Williams, any of them can sell the car without the other being available and signing the sale.
However, if the title comes with Kenedy Williams “and” Katrine Williams, then the car cannot be sold without the signature of the other.
6. It Can Lead to Good Loan Terms
If the car is financed, having two names on the title can lead to better loan terms, such as lower interest rates, because the lender may consider the combined creditworthiness of both owners.
7. Easier Access to Insurance Benefits
Insurance policies usually provide coverage for family members who live in the same household. Having both names on the car title can help ensure that all family members are covered under the same policy, leading to cost savings.
8. It Protects the Interests of Both Owners
In business or personal partnerships, having both names on the car title can protect the interests of all parties involved. It ensures that no one can sell or dispose of the car without the consent or knowledge of the other owner.
While any of them can sell the car, both owners have to be aware of the sale before it is done. You can’t just wake up and sell the car. Even the person buying the car will love to hear from the co-owner.
9. It May Increase the Resale Value of the Car
Another benefit of having two names on a car title is its ability to increase the resale value of the car.
For example, the buyer may agree to the price you give him simply because two persons own the car, it means that since two persons own the car, it must have been maintained properly, in the sense that if one person doesn’t have the funds to maintain, the other owner can take up with the maintenance.
These are the benefits of having two names on a car title. Therefore, if you wish to add two names to a car title, you can visit the Department of Motor Vehicles (DMV) or equivalent agency and follow the procedures provided by them.
Meanwhile, the requirements for car registration vary by location, so it’s important to check with the DMV for precise instructions and any required documents.
Disadvantages of Having Two Names on Car Title
Here are the disadvantages of having two names on car title:
- Both Owners Must Agree on the Sale: If you decide to sell the car, both owners must agree on the sale. If the owner does not agree and refuses to provide his signature, then the car will not be sold.
- The Insurance Premiums May be Affected: Insurance premiums can be affected if two names are on a car title depending on the driving history and credit rating of both owners.
- Both Owners may be Responsible for the Loan: If you use the vehicle as collateral for a loan, both owners may be responsible for the loan, and the lender could repossess the car if payments are not made.
- Shared Ownership and Responsibilities: Both individuals listed on the title have equal ownership rights and responsibilities to the car. This includes the financial obligations associated with the vehicle, such as loan payments, insurance, maintenance, and registration fees. So, if the person you added in the title is the type that doesn’t like maintaining the car, all the maintenance costs will be on your head.
- Joint Liability: If one owner is involved in an accident or causes damage to the vehicle, both owners may be held liable for any resulting legal or financial consequences. This can impact both owners’ insurance premiums and their assets.
- It Can Affect One’s Creditworthiness: Joint ownership can impact the credit histories of both owners. If one owner defaults on a loan or damages the car’s credit, it can affect the creditworthiness of the other owner.
- Access to Use and Conflicts: Both owners have equal rights to use the vehicle, which can sometimes lead to scheduling and usage conflicts. It’s important to establish clear guidelines for the use of the car.
Therefore, with these implications, you need to ensure that the person you are adding to the car title has a clean driving history. The person has to be equal to the task.
Also, you can have a clear and well-documented agreement between the both of you outlining how the financial responsibilities and decisions will be shared and how disputes will be resolved. You can get a law in charge of issues like this to help out.
Conclusion
Having both names on a car title is beneficial in the sense that both individuals have equal rights and responsibilities related to the vehicle, including financial obligations, insurance coverage, and the ability to sell or transfer the car.
Therefore, with the sumptuous benefits of having two names on a car title, you need to consider the implications and responsibilities of co-ownership before adding someone to a car title, and it may be wise to consult with a legal or financial advisor for guidance.
