Marital property, sometimes known as community property or shared property, consists of assets and funds that a couple acquires during their legal marriage.
When a couple goes through a divorce or separation, these assets and funds are assessed and distributed evenly between the two parties. Each state has its own laws and regulations on defining and calculating marital property.
Marital property and community property are fundamentally the same concepts.
In states that recognize these terms, the shared assets are typically divided equally between divorcing spouses. This is because the assets are considered jointly owned by both partners.
The strong assumption in these states is that anything obtained during the marriage belongs to both spouses. As a result, a spouse claiming that a certain property is separate has the responsibility to prove their assertion.
There are nine states that follow community property laws:
Marital property can also include assets gained during the marriage specifically classified as separate property, meaning they are not shared between spouses. An example of this would be a gift or inheritance from a relative that was explicitly given to only one spouse, not to the couple jointly.
Shared property usually includes:
Separate property refers to assets and property obtained before the marriage. This type of property cannot be divided upon separation or divorce and is owned by only one spouse. It is not subject to division by the court.
Generally, separate property includes:
The court determines separate property, which is irrelevant to divorce proceedings. It is crucial to treat separate property as separate; for instance, if income from a separate property is also considered separate, it should not be combined with community property.
Additionally, separate property can be converted into community property through methods such as prenuptial or postnuptial agreements or a legal process called transmutation.
In some states, courts follow the principle of equitable division of marital property. The goal is to distribute the property fairly between the parties involved, often used in non-community property states.
When dividing marital property equitably, courts typically consider factors such as:
A prenuptial agreement is a legally binding contract signed by both spouses before the marriage. It outlines how assets and debts will be divided in case of divorce or separation. If a prenuptial agreement exists, the court will typically honor its terms unless it is deemed unfair, unconscionable, or invalid for other legal reasons.
The length of the marriage can impact how marital property is divided. A longer marriage may result in an equal division of assets, as both spouses are likely to have contributed significantly to the accumulation of marital property. The court may consider each spouse’s contributions more closely in shorter marriages.
The court considers each spouse’s age, employment status, health, and financial assets to determine a fair property division. For example, a spouse with a higher earning capacity may receive a smaller share of the marital assets. Similarly, if a spouse has health issues that limit their ability to work, they may be awarded a larger portion of the marital property.
The overall value of each spouse’s assets, including separate and marital property, is considered when dividing marital property. This helps the court assess the financial needs of each spouse and determine an equitable distribution.
If children are involved, the court will consider the needs of the children and the custodial parent’s financial responsibilities. The division of marital property may be influenced by child support obligations and the custodial parent’s need to maintain a stable home environment for the children.
Spousal support, also known as alimony, is a payment made by one spouse to the other to maintain their standard of living after divorce. If one spouse requires financial assistance to meet their living expenses, the court may adjust the division of marital property to provide for their needs, or it may order spousal support in addition to the property division.
If one or both spouses own a business, either independently or jointly, the court will consider the value and complexity of the business when dividing marital property. Factors such as the contribution of each spouse to the business, the business’s future prospects, and the feasibility of dividing or selling the business will be taken into account. In some cases, one spouse may retain the business while the other receives a larger share of other marital assets to balance the distribution.
Equitable division does not aim to divide property equally but to achieve a fair and comprehensive result for the parties involved. One spouse may require or be entitled to more marital property than the other. This approach can be more flexible and intuitive than traditional property separation methods.
Courts might find equitable division necessary in certain situations.
For example, if a spouse has special needs, they may receive property items that accommodate them. Additionally, if a marriage lasted a long time and one spouse primarily served as the homemaker while the other spouse earned income, the homemaker might need more support and property upon divorce.
This is because they may have limited opportunities to earn their own income after spending years outside the workforce and will require additional resources for assistance.
Equitable division is generally seen as an option or alternative to traditional property division methods rather than the default approach. Some jurisdictions may not permit alternative methods and will only use traditional methods of marital property division.
If you are facing divorce proceedings, it is recommended to consult with a qualified and experienced family lawyer in your area.
A knowledgeable family attorney can help you understand how your state defines and divides marital property. They can also represent you in any required court proceedings, ensuring that your rights and interests are protected throughout the process.
Working with a lawyer can provide valuable guidance and support during what can be a complex and emotionally challenging time.
LegalMatch is an online legal matching service that can help connect you with experienced family lawyers in your area who can assist you with marital property issues.
When you use LegalMatch, you can fill out a brief online form detailing your legal needs and concerns. Then, LegalMatch will match you with attorneys in your area with experience handling divorce and property division cases. You can review each attorney’s profile, credentials, and client reviews to help you decide which attorney to hire.
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