Short Answer

Yes. In North Carolina, civil penalties for an insurance lapse or revoked registration follow the person who was the registered/titled owner when the violation occurred. Transferring or selling the car later—even by court order—does not erase past penalties. A partition case can force a transfer or sale without the co-owner’s signature, but it does not wipe out penalties already assessed to you. You may ask the clerk to adjust the distribution of sale proceeds between co-owners to account for these costs.

Understanding the Problem

You are in North Carolina. You co-own a car, but the title is in your name and your former spouse keeps the car and won’t sign over title. The insurance lapsed, registration was revoked, and the motor vehicle agency assessed civil penalties. You want to force a transfer of title by gifting or selling the car through a partition proceeding for personal property. The question is whether you remain liable for those penalties after the vehicle is transferred or sold.

Apply the Law

North Carolina treats insurance-lapse and registration penalties as obligations of the person shown as the registered/titled owner at the time of the violation. A later transfer—voluntary or court-ordered—does not retroactively remove those charges. A co-owner may use a partition proceeding before the Clerk of Superior Court to divide or sell jointly owned personal property when it cannot be fairly divided, and a court-appointed commissioner can execute the transfer paperwork if a co-owner refuses to sign. Judicial sale procedures apply, and either side can appeal most clerk orders within a short window. County practices and DMV document requirements can vary.

Key Requirements

• Co-ownership: You and the other person both have an ownership interest in the vehicle.
• Not practically divisible: A motor vehicle cannot be partitioned in kind, so sale in lieu of division is typically the remedy.
• Clerk’s jurisdiction: File a partition special proceeding with the Clerk of Superior Court; the clerk can order a sale and appoint a commissioner to convey title if a co-owner won’t sign.
• Judicial sale process: Sales proceed under judicial sale rules; the order may authorize a public or private sale.
• DMV compliance to retitle: After a sale, the commissioner signs the title and provides certified court documents the DMV requires to retitle.
• Penalties stay with the registrant: Civil penalties for insurance lapse/registration revocation already assessed to you are not erased by a later transfer or sale.

What the Statutes Say

• North Carolina Gen. Stat. § 1-339.1 (Judicial sales; applicability and definitions) – Judicial sale framework used for court-ordered sales.
• North Carolina Gen. Stat. § 1-339.33 (Private sale procedure) – Allows court-authorized private sales when appropriate.
• North Carolina Gen. Stat. § 1-301.3 (Appeals from clerk) – Sets appeal rights and a short deadline from service of the clerk’s order.
• North Carolina Gen. Stat. § 20-52 (Application for registration and title) – Governs title/registration applications, including co-ownership designations.

Analysis

Apply the Rule to the Facts: Because the title and registration are in your name, penalties tied to the insurance lapse and revocation attach to you for the period you were listed as owner/registrant. A partition-by-sale can move the car out of your name even if the co-owner refuses to sign; the clerk can appoint a commissioner to execute transfer documents. That court-ordered transfer does not cancel penalties already assessed, but you can ask the clerk to account for those carrying costs when allocating sale proceeds between co-owners.

Process & Timing

1. Who files: Any co-owner. Where: Clerk of Superior Court in the North Carolina county with a connection to the vehicle (often where it’s kept or where a co-owner resides). What: A verified petition for partition of personal property requesting sale in lieu of partition and appointment of a commissioner. When: No fixed filing deadline for partition, but appeal of a clerk’s order is typically due within 10 days of service.
2. The clerk issues an estate/special proceeding summons; you serve the co-owner under Rule 4. The clerk may order a sale and appoint a commissioner to sign title paperwork. Timing varies by county; expect several weeks to schedule and complete the sale.
3. After the sale, the commissioner executes the assignment of title and provides certified copies of the order to satisfy DMV requirements. Proceeds are applied to costs and then distributed between co-owners per the order.

Exceptions & Pitfalls

• Transferring or selling the car does not erase penalties that accrued while you were the registered owner; those typically remain payable by you.
• DMV may require specific documents (certified order, commissioner’s assignment) to complete title transfer—confirm requirements before the sale to avoid delays.
• If you delay filing, additional penalties or holds can accrue; respond promptly to any DMV notices.
• Service mistakes can stall the case; make sure the co-owner is properly served under Rule 4.
• If the other co-owner claims a different ownership share or raises complex issues, the matter may be transferred to Superior Court, extending timelines.

Talk to a Partition Action Attorney

If you’re dealing with co-owned vehicle title problems, insurance-lapse penalties, or a co-owner who won’t sign, our firm has experienced attorneys who can help you understand your options and timelines. Call us today at [919-341-7055].

Disclaimer: This article provides general information about North Carolina law based on the single question stated above. It is not legal advice for your specific situation and does not create an attorney-client relationship. Laws, procedures, and local practice can change and may vary by county. If you have a deadline, act promptly and speak with a licensed North Carolina attorney.