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Property Distribution
In every divorce, the division of asset and property is a central issue. Regardless of the value or type of possessions, couples must resolve how to divide both assets and debts accumulated during the marriage. This process impacts not only finances but also future security.
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1. Property Distribution: Marital vs. Separate Property
Courts generally distinguish between marital property—acquired during the marriage—and separate property, which includes assets owned before the marriage or received as a gift or inheritance. Equitable distribution is not always a 50/50 split, but rather what is deemed fair under the law.
Property Distribution: Criteria in Equitable Distribution
Factors considered include:
- - Debt and liabilities
- Each spouse’s financial condition
- Contributions to education or career
- Health status
- Tax impact
- Behavior of the parties
2. Asset and Property Types: Marital, Non-Marital, and Commingled
Marital property includes assets acquired jointly or individually during the marriage.
Non-marital property includes assets owned before the marriage or gifts/inheritances received during the marriage.
Commingled property refers to originally separate assets that became mixed with marital assets—such as upgrading a separate property home using marital funds.
Asset and Property Dissipation During Marriage
If one party squandered marital assets—through gambling, reckless spending, or hidden investments—the court may compensate the other spouse with a larger portion of the remaining property.
3. Property Distribution: Premarital and Postnuptial Agreements
A premarital agreement can define which assets remain separate after marriage and how future property will be treated. It is one of the most effective tools for avoiding litigation during divorce.
Asset and Property Management of Real Estate and Businesses
Real estate acquired during marriage or transferred to joint names usually becomes marital property. For business interests, even if legally separate, income and appreciation during marriage may be subject to division.
4. Asset and Property: Financial Accounts, Wills, and Beneficiaries
Bank accounts and investment portfolios should be clearly separated to maintain individual ownership. Joint accounts may be considered gifts to the spouse. Beneficiary designations in wills and life insurance should be updated post-divorce.
Asset and Property Implications in Support Litigation
If child or spousal support is contested, joint tax filings and asset commingling may affect how income and property are calculated. Maintaining financial separation is essential.
The information provided in this article is for general informational purposes only and does not constitute legal advice. Reading or relying on the contents of this article does not create an attorney-client relationship with our firm. For advice regarding your specific situation, please consult a qualified attorney licensed in your jurisdiction.
