Property Division

Question 1

Community property:

Answer 1

All property acquired during the marriage is deemed owned one-half by each spouse, and all property brought into the marriage or acquired by gift or bequest is separate property

Question 2

Equitable division of all property:

Answer 2

The court divides all property owned by either spouse, whether acquired before or after the marriage

Question 3

Equitable division of marital property:

Answer 3

Each spouse takes their separate property, and the court only divides the property acquired during the marriage

Question 4

SEPARATE PROPERTY

Answer 4

Generally, in a divorce, each spouse takes their separate property. Separate property includes:
* Property owned before marriage
* Property acquired by gift or inheritance
* Property acquired in exchange for separate property
* Income and appreciation of separate property
* Pain and suffering awards
* Personal damages (for example, future medical expenses or future lost wages)
* Property acquired after an order of legal separation that includes a final disposition of property

Question 5

Marital property

Answer 5

Marital property includes:
* Property acquired during the marriage
* Earnings
* Employment benefits, pensions, and stock options
The majority rule is that employment benefits, stock options, and pension rights (see below) earned during marriage are marital property even if they will not be exercised or vested until after the divorce.
* Lost wages Many states hold that if a cause of action for lost wages due to personal injury accrues between the date of marriage and final separation, then the proceeds from the settlement or award are marital assets subject to distribution.
* Reimbursement for medical bills incurred and paid with marital property
* Recovery for damages to marital property

Question 6

EQUITABLE DIVISION

Answer 6

Once the court identifies and values the marital property, the court will make an equitable–not necessarily equal–division. Remember, the trial court is given a great deal of discretion, and the court’s
division of the property is not subject to modification once the divorce is final. The factors considered in dividing the property usually include:
* The age, education, background, and earning capabilities of both parties
* The duration of the marriage, and whether there were any prior marriages
* The standard of living during the marriage
* The present incomes of both parties, their vocational skills, and employability
* The source of the money used to purchase the property
* The health of the parties
* The assets, debts, and liabilities of the parties
The needs of the parties
* The child custody provisions
* Whether the distribution is in addition to, or in lieu of, alimony
* Each party’s opportunity to acquire future income and assets
* Each party’s contribution to the acquisition or enhancement of the existing marital assets
* Each party’s contribution as a homemaker to the family unit
* Economic fault (that is, whether either party has dissipated marital property