How is property divided in a divorce?

Splitting the Pie: How Property Gets Divided in a Divorce

Ever wonder what happens to all the stuff you’ve accumulated over the years if you get divorced? From the house to the car, the furniture to the family pet, it can be a messy process to figure out who gets what. Let’s break it down in a way that’s easy to understand.

What Counts as Property?

In a divorce, “property” refers to pretty much anything of value that was acquired during the marriage. This includes:

• Real estate (houses, land, etc.)
• Vehicles
• Household items (furniture, appliances, electronics)
• Financial assets (bank accounts, investments, retirement funds)
• Businesses or professional practices
• Collectibles, artwork, and other valuables

Even debt (like credit card balances or loans) is considered part of the marital property and needs to be divided.

How Is It Divided?

The goal is to split up the property in a fair and equitable way. But “fair” doesn’t always mean a 50/50 split. Here’s the general process:

1. Identify and Value Everything: First, all marital property needs to be listed and assigned a monetary value.

2. Separate the “Separate” Property: Anything that was owned before the marriage, or acquired as a gift or inheritance during the marriage, is considered “separate property” and usually stays with the original owner.

3. Divide the Rest: The remaining marital property is then divided according to the laws of the state you live in. Some states follow “community property” rules (a 50/50 split), while others use “equitable distribution” (a fair but not necessarily equal split).

4. Consider Special Circumstances: Factors like the length of the marriage, each spouse’s income and financial situation, and the needs of any children involved can influence how the property is divided.

3 Surprising Facts

1. Pets Are Property Too: In most states, pets are legally considered personal property that must be assigned to one spouse or the other. Some couples opt for joint “custody” arrangements.

2. Your Degree Has Value: If one spouse paid for the other’s education or professional training during the marriage, the supporting spouse may be entitled to a share of the enhanced earning potential.

3. Your Lottery Winnings Aren’t Safe: Even if you hit the jackpot while married, those lottery winnings are usually considered marital property subject to division in a divorce.

Getting divorced is never easy, but understanding how property division works can help make the process a bit smoother. Remember, the goal is to reach a fair settlement that allows both parties to move forward.

Learn More:

• Alimony and Spousal Support: How it works and who qualifies
• Child Custody and Visitation: Determining living arrangements for kids
• Mediation vs. Litigation: Alternative paths to resolving divorce disputes