When to Use

If one party took out a lease, and the other person is going to drive it, after the divorce, this is not an ideal circumstance.  The person that took out the lease has liability exposure for the reasons stated in our video on this page.

However, this may be the agreement of the parties, and as such in those cases, the following language should be included in the divorce decree.

Provisions Regarding the Motor Vehicle Lease

IT IS ORDERED that the lease for the BMW 428i Gran Coupe motor vehicle, vehicle identification number _____________________, shall be subject to the following provisions:

1.The husband, JOHN SMITH, shall continue to make the monthly lease payments in the amount of $754.88 per month, payable to BMW Financial Services, at _____________, until ____________ (date of last payment due).

2. The wife, JANE DOEl, shall maintain possession of the vehicle and shall have the sole right to it’s use and enjoyment until on or before the date of last payment, at which time the wife SHALL return the vehicle to BMW, in accordance with the lease provisions.
3. The cost of repairs of any and all damage done to the vehicle directly by JANE DOE, or by any third party, shall be borne by JANE DOE.
4. Any and all payments due to BMW at the end of the lease for any reason including but not limited to mileage overages, damage to the vehicle, or excessive wear and tear shall be solely borne by JANE DOE
5. JOHN SMITH shall not bear any responsibility or cost for anything other than the monthly payment in the amount of $754.88 payable until  _________ (date of last payment)
6. JANE DOE shall, at her own expense, maintain liability insurance on the vehicle in accordance with the lease terms.
7. IT IS ORDERED any suit or claim arising from JANE DOE’s operation or possession of the vehicle, including any claims by JANE DOE, BMW, or any other third party, shall be at the sole expense of and the full responsibility of JANE DOE.

IT IS FURTHER ORDERED that if any claim, action, or proceeding pertaining to the vehicle and/or the vehicle lease is hereafter initiated to hold JOHN SMITH liable for any debt, obligation, liability, act or omission of JANE DOE, then JOHN SMITH, at her sole expense, defend JOHN SMITH against any such claim or demand, whether or not well founded, and she shall indemnify JOHN SMITH and hold him harmless from all damages resulting from the claim or demand regarding the vehicle or the lease.

Damages, as used in this provision, includes any reasonable loss, cost, expense, penalty, and other damage, including without limitation attorney’s fees and other costs and expenses reasonably and necessarily incurred in enforcing this indemnity.

IT IS ORDERED that JANE DOE will reimburse JOHN SMITH on demand, for any payment made by JOHN SMITH other than the monthly lease payments ordered to by paid by JOHN SMITH herein, to satisfy any judgment of any court of competent jurisdiction or in accordance with a bona fide compromise or settlement of claims, demands, or actions for any damages relating to the vehicle and the lease.

IT IS ORDERED that JANE DOE shall give JOHN SMITH prompt written notice of any litigation threatened or instituted against either party that might constitute the basis of a claim for indemnity, including but not limited to any automobile accident or damage to the vehicle.