Property Division

The marital assets to be divided in a divorce will include almost all assets acquired during the marriage, such as real property, time shares, personal property, vehicles, bank accounts, financial investments, business interests, life insurance cash values, retirement accounts, credit card airline mileage points, sporting equipment, tools, art objects, household furnishings, etc. The general rule applied to property division within a divorce is “ . . . as may be just and proper in all of the circumstances.”

In most circumstances, this means a 50/50 split of the assets and debts acquired during the marriage. Almost all assets and debts acquired during a marriage are going to be subject to an equal division; however, some assets acquired during the marriage, such as inherited properties, may be treated as separate property and not subject to an equal division.

In general, property acquired before a marriage can be separate property and not subject to an equal division. An important consideration is what has happened to the premarital property during the marriage. Have you kept it separate and identifiable, or have you commingled the property? If commingled, the court is reluctant to disentangle the commingled assets by tracing historical transactions.

The debts incurred during the marriage will also be divided between the parties. In general, the total outstanding balance of the marital debts will be subtracted from the total of the fair market value of the marital assets, to determine the net equity. The net equity is then divided 50/50 between the parties. Often, the trick is dividing the assets and debts in such a way that each party receives 50% of the net equity