Property Division

Question 1

What is the majority approach to property division?

Answer 1

Equitable division of marital property. Each spouse takes their separate property, and the court divides the marital property equally.

Question 2

Steps in Equitable Division of Marital Property

Answer 2

There are two steps in equitable division of marital property:

1. Classify property into separate property and marital property.
2. Equitably divide the marital estate.

Question 3

Separate Property

Answer 3

Separate property includes:

1. All property acquried by the spouse before the marriage;
2. Property acquried by a spouse by gift, devise, or descent;
3. Property acquried in exchange for property acquired before the marriage;
4. Income and appreciation from separate property;
5. Pain and suffering awards, future lost wages.

Question 4

Marital Property

Answer 4

Marital property includes:

1. Property acquired by either spouse during the marriage up until the divorce decree or order of legal separation;
2. Pension benefits, stock options, and other benefits that accrue during the marriage;
3. Workers compensation, awards for lost wages during marriage.

Question 5

What are the tax consequences of equitable division?

Answer 5

There are none! Equitable division is a non-taxable event.

Question 6

Relevant Factors for Equitable Division

Answer 6

1. Age;
2. Education;
3. Earning capabilities and employability;
4. Duration of marriage;
5. Standard of living during marriage;
6. Needs of the parties;
7. Contribution to the marital estate
8. Whether distribution is in lieu of alimony;
9. Economic fault;

⇒ A court will not consider marital fault when equitably dividing property.