Family Law - Marital Property

Question 1

What are the kinds of states for marital property distrobution?

Answer 1

1. Equitable Distribution States
2. Community Property States
3. Hotchpot States

Question 2

Equitable Distribution States

Answer 2

When spouses divorce, courts can divide marital property in an equitable manner. Cannot divide or reallocate separate property

does not mean equally

Question 3

Community Property States

Answer 3

Definitions of separate property and marital property are substantially similar to the definitions under equitable distribution

• Use term “community property” instead of marital property
• tend to split community property equally rather than equitably

Question 4

Hotchpot States

Answer 4

Do not recognize the difference between marital property and separate property. Courts divide any and all property that spouse hold at the time of divorce

normally divided equitably

Question 5

Separate Property

Answer 5

Property that a spouse:

• Earned before the marriage
• Obtained during the marriage through gift or inheritnace from third parties
• Obtained during the marriage, but paid for with separate property
• Earned after the marriage ends - states used different dates for this

Question 6

Marital Property

Answer 6

• All property acquired during a marriage through a spouse’s efforts
• The party arguing that property is separate has the burden of proving it

Question 7

Dividing Marital Property

Answer 7

Genearlly, after classification, the courts will divide marital property equitably

Question 8

Relevant factors for dividing marital property equitably

Answer 8

• Length of marriage
• Prior marriages
• Age, health, earnings, earning potential, liabilities, and needs of both spouses
• Contributions to increases in marital property, including homemaking and childrearing services
• Value of separate property
• Reductions in valuation in marital property by one spouse
• Standard of living enjoyed during the marriage
• Economic circumstances of each spouse at the time of divorce
• Custody of any minor children

Question 9

Tax Consequences of marital property division

Answer 9

Equitable distribution transfers between spouses at divorced are not taxed as income

Question 10

Modifications of Property Division

Answer 10

• Once a court divides the marital property, the judicial decree cannot be modified - changes in circumstances after divorce are irrelevant
• Even if one spouse becomes disabled after divorce, a court will not modify the division, but can modify spousal support