Property Division & Alimony

Question 1

Approaches to Property Division

Answer 1

Community Property: Marital property split 50/50

Equitable Division of All: Separate and marital property pooled together and split equitably

Equitable Division: Marital property split equitably

Question 2

Separate Property

Answer 2

Separate property is property owned before the marriage, acquired by gift or inheritance, acquired in exchange for separate property, appreciation of separate property due solely to market forces, pain and suffering awards, personal damages, property acquired after an order of legal separation.

Question 3

Marital Property

Answer 3

Marital property is all other property acquired during the marriage and includes future earnings such as pensions.

Question 4

Commingling

Answer 4

If separate property is inextricably intertwined with marital property such that it can no longer be traced, it will be considered marital property.

Question 5

Transmutation

Answer 5

If separate property is treated in a way that evidences an intention for the property to be marital, it will be considered marital property.

Question 6

Improvement

Answer 6

If separate property is improved by use of marital funds or the effort of a spouse, it remains separate property but most states reimburse the marital estate for the value added.

Question 7

Property Acquired Before and Paid After

Answer 7

If property is acquired before a marriage but paid for after, the majority of courts apportion the property between separate and marital based on contributions.

Question 8

Pensions

Answer 8

The portion of a pension earned during a marriage is marital property.

Question 9

Professional Licenses

Answer 9

Most courts do not consider professional licenses to be distributable property.

Question 10

Equitable Division Factors

Answer 10

Equitable division does not necessarily mean equal. Courts have discretion in making the determination and will consider factors such as:
-age, education and earning capabilities
-duration of marriage
-standard of living
-incomes and employability
-needs
-child custody and alimony
-contributions
-economic fault

Question 11

Alimony

Answer 11

Alimony is support paid to an economically dependent spouse to ensure she has an adequate income stream to meet her needs. There are four types: permanent, lump sum, rehabilitative, and reimbursement.

Question 12

Permanent

Answer 12

Permanent support is paid regularly to a spouse who has neither the resources nor the ability to be self-sustaining. It lasts indefinitely and can be modified upon proof of substantial change of circumstances in needs of recipient or ability of payor to pay (voluntary reduction in income insufficient).

Question 13

Lump Sum

Answer 13

A lump sum payment is a fixed amount payable all at once or in installments. It has a fixed duration and cannot be modified.

Question 14

Rehabilitative

Answer 14

Rehabilitative support is paid regularly for a limited time to enable a spouse to gain skills to become self-supporting. It lasts for a fixed period of time and can be modified upon proof of substantial change of circumstances.

Question 15

Reimbursement

Answer 15

Reimbursement support is paid to a spouse who supported the other while they obtained a professional degree or pursued some other venture. It lasts for a fixed period of time and cannot be modified. It is based on the value of the contribution.

Question 16

Alimony Factors

Answer 16

The main considerations of alimony are the needs o the recipient spouse and the ability of the other spouse to pay. Courts have great discretion and will weigh factors such as:
-standard of living
-duration of marriage
-age/health
-financial resources
-contributions
-time needed to obtain employment
-ability of payor to meet his own needs
-marital fault sometimes

Question 17

Termination of Alimony

Answer 17

Permanent alimony terminates upon remarriage of the recipient spouse, death of either spouse, or cohabitation of the recipient spouse with another in a marriage-like relationship.