For those getting a divorce, the idea of equitable partition is implemented. Equitable division aims to give the parties a more thorough and equitable distribution of their assets than conventional division plans.
This is accomplished by taking into account a wider range of variables, such as those affecting employment and income, health issues, the ownership of all assets, and even the individual’s talents and abilities.
Sorting the property into separate and shared categories is the more common way to distribute it. Upon divorce, the parties typically divide the joint property equally while keeping any separate property they may have owned during the marriage. It can be challenging to determine which person held each item of the property being divided, which is the fundamental problem with this form of the distribution plan.
How Does “Equal Division” Work?
Equitable distribution and equal distribution are two different legal concepts. The allocation of assets or benefits between partners that is equal by proportion is referred to as an “equal distribution” (that is, a 50-50 split). This might be used, among other things, to determine how much each spouse will receive in retirement benefits.
In some ways, fair distribution is more inclusive and all-encompassing than equal distribution. The truth is that equitable distribution doesn’t always result in a precise 50-50 split between the parties (as is sometimes the case with community property assets). Instead, the court determines what is “equitable” or fair when allocating property and assets.
When is an Equitable Property Distribution Appropriate?
Due to these factors, equitable distribution is frequently a good solution when child support or spousal support would be the main concern. The court may need to include the various child support requirements when determining the property in these kinds of circumstances.
Therefore, the division of assets may reflect how each party feels about the child or children.
Furthermore, equitable distribution is governed by regional legislation in each country. Separate property distribution is practiced in some jurisdictions, while equitable principles might be applied in another. As a result, the location of the case’s filing can occasionally have an impact on property findings.
How Does Marital Property Work?
Assets and money accumulated during a valid marriage are referred to as marital property.
These assets and funds will be assessed and divided equally between the divorcing spouses in the case of a divorce or separation. Depending on the state and legislation, marital property may also be referred to as communal property or joint property. The laws establishing and determining the quantities of marital property vary greatly between states.
In essence, community property and marital property are the same things. The community or marital property is normally divided equally between the divorcing couples in states that recognize it. This is due to the fact that both spouses are the owners of marital property, as was already mentioned. Everything obtained during the marriage is strongly presumptively considered to be a community item in these states at the outset of the process. Any spouse who asserts that a piece of property is distinct property must therefore support their claim.
Property and assets acquired during a marriage that have been officially designated as distinct property and are not shared may also be referred to as marital property. An illustration of this would be a gift or inheritance from a relative that was given to one spouse solely and not to the couple as a whole.
The couple’s home is an example of shared property, assuming it is in both of their names.
Other examples include:
- Any property that is shared or co-owned;
- All earned money and property purchased after the marriage started.
- Property obtained before the marriage, if the property was meant for the couple’s mutual use or benefit.
What Specifies Property as Separate?
Assets and property acquired prior to marriage are referred to as separate property. As a result, it cannot be shared following divorce or separation. It is personal property that alone belongs to one individual and cannot be divided by a judge.
Generally speaking, the following items are included in separate property:
- Gifts and inheritances; Heirlooms, or priceless possessions to be retained in the family, such jewels;
- Real estate used exclusively or mostly for business reasons; property acquired through a trust; real estate that has been deemed distinct by a contract, like a prenuptial agreement; and
- Property that wasn’t bought with the money from another distinct property and wasn’t made for the parents’ use or gain.
Any item deemed separate property is irrelevant to the divorce process since separate property rulings are made in court. It’s crucial to remember that different properties must be handled separately. This means that you cannot include revenue from a residence you held before marriage in community property if you have declared it as separate property and have earned income from it while doing so.
Separate property can also be converted into community property for a variety of reasons, including tax advantages and practicality. Prenuptial or postnuptial agreements, as well as the transmutation procedure, are legal ways to do this.
What is Equitable Marital Property Division?
Some states adhere to the equitable division of property rules. The court will make an effort to split the assets in a way that is equitable to all parties. States without communal property generally use this.
When splitting marital property fairly, courts typically take the following into account:
- A prenuptial agreement being present;
- How long a marriage lasted before a divorce or separation was requested;
- Age, employment status, state of health, and financial resources of each spouse;
- The total estate of each spouse;
- Whether one party may need spousal support;
- Questions about child custody or child support; and
- Whether one or both of the parties own any enterprises, either jointly or independently.
It is crucial to remember that the equitable division of marital property does not aim to distribute assets equally. The objective is to provide each party with a just and complete outcome. It’s possible for one spouse to need or have more rights to the marital estate than the other. The procedure could be viewed as being more logical and flexible than conventional methods of dividing property.
In some situations, the courts may deem equitable partition to be necessary. For instance, if one of the spouses requires special accommodations, they can be given ownership of specific items of property.
Additionally, suppose the marriage lasted a long time, and one spouse cared for the home while the other mostly supported themselves financially. In that case, the homemaker may need greater support and property in the event of a divorce. After spending so many years outside of labor, they may not have many options to generate their own income and may require additional resources for support.
Equitable division is typically not thought of as the normal way to divide property; rather, it is perceived as an alternative or choice. Additionally, certain governments might only use traditional techniques of dividing marital property and not permit any other ones.
Do I Need an Attorney to Help Me With Equitable Division Law?
Equitable division may occasionally be beneficial for those going through a divorce. The actual concepts, meanwhile, can be intricate and complicated. If you require assistance with equitable division law, you might need to engage a divorce attorney.
A lawyer can represent you in court during proceedings and offer legal counsel about the division of property.
