Equitable Distribution

Question 1

VI. Equitable Distribution

Answer 1

A. Approaches to Division of Property

B. Separate Property

C. Marital Property

Question 2

VI. A. Approaches to division of Property

Answer 2

1. Equitable division of marital property- May be divided between spouses, but SP separate property remains with owning spouse
2. Equitable Division of All Property- some courts will divide all assets however aquired
3. Community Property States- All property other than separate property acquired during marriage is community property and is split 50/50.

Question 3

VI. B. Separate Property (SP)

Answer 3

1. Definition
   
   • Owned prior to marriage
   • Brought into marriage by gift, Will, or inheritance
   • Includes Rents, Issues & Profits of SP
2. Separate Asset Increases in Value During Marriage
   
   • Not automatically transformed by value increase
     
     • Exception: Significant effort by spouse to enhance value or build equity
3. Transformation of SP into Marital Property- May transform when:
   
   • Mixing of SP with MP so no longer SP traceable
   • Titling SP in both names
   • Marital Funds enhance or build equity

Question 4

VI. C. Marital Property (MP)

Answer 4

1. Definition
   
   • All property other than SP
   • acquired with funds earned during marriage = MP
   • product of spouse’s efforts or skill
2. Subject to Just and equitable distribution upon divorce or dissolution
3. Factors considered
   
   • Circumstances
   • Duration of marriage
   • Age and health
   • income and capacity to earn
   • value of SP
   • origin of property
   • Custody and Child support
   • Homemakers services
   • Alimony & Maintenance obligations
   • Taxes
   • Dissipation of Marital Assets
   • MV and Emotional value of assets
   • Conduct of each spouse during marriage
     
     • financial=Yes
     • marital misconduct= No
4. Specific Types of Property
   
   • Pensions- earned during marriage
   • Degrees- No
   • Stock options- earned during marriage
   • Personal injury awards (torts)- if occurrence before award MP