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One option for dividing property lines down a shared driveway is to install chain link fencing. A chain link fence is a relatively inexpensive fence to have installed, and can readily be placed over asphalt. Asphalt is soft enough to allow fence posts to be sunk into the driveway.
Neither neighbour has a right to park their car on a shared driveway, as such it's something that must be worked out privately between both parties. There's little legal protection on this issue as whichever way you slice it, your car will either be illegally parked or blocking a right of way.
Check your title deeds and those of your neighbour to establish the boundaries of your property and how the driveway is owned. You could each own half of it, or one of you could own the whole of it. Either way, as the driveway is shared you will each have been granted certain rights of access over it.
A shared driveway is usually owned by each of the homes involved. The part of the driveway on their land is owned by them, and the maintenance of the entire driveway is shared by all parties. In some cases, the driveway may be owned by one house, but legal access is given to anyone who needs to use it.