Division of Assets

Divorce laws, like many laws, vary state to state. With some divorce issues, like the division of assets or property, state laws can greatly change the way in which a divorce is carried out. Currently, states employ one of two ways to divide property in the case of divorce: equitable distribution and community property.

Equitable distribution is by and far the most popular method used by states in the division of assets. Equitable distribution leaves the power to the distribution of property to the courts. The courts do not necessarily attempt to divide property equally, but instead choose to distribute marital acquisitions fairly. For instance, states that employ equitable distribution will more commonly award gifts or inheritances to the spouse who received them rather than dividing it between the two spouses. This may depend on the circumstances, however. It is also important to note that the burden of proof that an asset exists is on the individual, not the judge, in this system. If you think your spouse is hiding an asset, you may need a private investigator hired by an attorney to look into the existence of the asset. This system can make for a long, lengthy trial if there is debate regarding the ownership of items.

Community property is a less popular method used by ten states, most notably California and Arizona, in the division of assets in a divorce. This method involves splitting all assets 50/50 in the case of a divorce. Property is only divided unevenly in special cases. Noteworthy about this system is that debt is also included as an asset to be split evenly, regardless of who created the debt. This can cause issues; for instance, if one spouse incurs a lot of credit card debt without the other spouse's knowledge, both spouses are still equally responsible for the debt.

Hotly contested division of assets can easily increase the cost of divorce. Couples are often advised to do their best to divide their assets in a private settlement and not in court to save money. Courts are more than happy to accept settlements provided they do not appear fraudulent or agreed upon via coercion.