Property Division

Question 1

Most common approach to property division?

Answer 1

equitable division of marital property

Question 2

For equitable division of marital property, what are the two steps?

Answer 2

Step 1: classification = determine what is marital and what is separate property.

Step 2: division = an equitable division of the marital property no matter who the property is titled.

Question 3

Separate property includes property:

Answer 3

1. owned BEFORE marriage
2. acquired by gift
3. acquired by inheritance

Question 4

Marital property includes:

Answer 4

1. all property acquired during the marriage
2. earnings
3. employment benefits, pensions, stock options
4. lost wages
5. reimbursement for medical bills incurred and paid with marital property
6. recovery for damages to marital property

Question 5

Separate property may become marital property through either:

Answer 5

1. commingling = inextricably intertwined to the extent that it can no longer be traced (ex: bank acct inherited but then used to pay for vacations with spouse)
2. transmutation = evidence an intention for the property to be marital property (ex: placing separate property in the names of both spouses)

Question 6

When will improvements made to separate property make it marital property?

Answer 6

When the separate property is improved by the use of marital funds or efforts of a spouse.

An increase in value due to market factors would not make separate property become marital property.

Question 7

The portion of a pension earned during marriage is:

Answer 7

marital property subject to distribution.

Question 8

In making an equitable division, the trial court has:

Answer 8

substantial discretion!!!

equitable ≠ equal

Question 9

Factors court considers in making equitable division of marital property:

Answer 9

1. Age, education, background, and earning capabilities
2. Duration of marriage
3. Standard of living during marriage
4. Present income and employability
5. Source of funds
6. Health of parties
7. Assets, debts, and liabilities
8. Needs
9. Custody of minor children
10. Alimony
11. Opportunity to acquire future income and assets
12. Contribution of marital assets
13. Contribution as homemaker
14. Economic fault (that is, whether either party has dissipated the marital property)