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Property Distribution
Property Distribution
A marriage is not only an emotional union - it is also an economic union. During marriage, spouses combine their incomes, assets, investments, property and debts. With the exception of a few states, most states have equitable distribution laws; which means that marital property is subject to distribution at the courts discretion. Equitable distribution does not guarantee that spouses will split assets equally, but it does shared property to fair division terms.
Property Distribution Factors
Before distributing marital property among spouses, the court will consider a variety of factors. These factors may include:
- The length of marriage.
- The income of each spouse.
- The property purchased during the marriage.
- The age and health of each spouse.
- Any written marital agreement between the spouses.
- The tax consequences associated with the property.
- The debts and liabilities of each spouse.
- The earning capacity of each spouse.
Marital Property
Marital property is the shared assets and debts acquired during the marriage. All marital property is subject to distribution laws. Marital property includes houses, motor vehicles, stocks, savings, furniture, private businesses, 401 k, and real estate. Marital property also includes debts such as credit card debt, mortgages, car loans, school loans, and unpaid bills.
Separate Property
Separate property is assets or debts acquired by a spouse prior to the marriage. Separate property also includes inheritances or gifts given by a person outside of the marriage.
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