In a Divorce, Who Gets What Property?
Property in a divorce can be divided into two different categories: Marital/Joint Property, and Separate Property. During the divorce proceedings, the court will identify in what category each property should be placed. The court will divide marital property and then award separate property to its owner. The division of marital property must be equitable, keeping in mind that equitable means fair, not necessarily equal.
Separate property includes property acquired by one of the spouses prior to marriage; property acquired by one of the spouses by gift during the marriage; property acquired by one of the spouses during the marriage through inheritance; and property acquired in exchange for separate property, unless it changes character through transmutation.
Marital property is determined at the time of divorce and is property acquired by the parties during the marriage. Separate property can become marital property during the marriage through transmutation or commingling. Transmutation is when a court determines that certain property changed its character. This happens when the owner of separate property jointly titles the property with their spouse or adds a spouse onto a bank account. Commingling exists when property is said to lose its identity and cannot be traced. Examples of commingling include when spouses use their separate money together to purchase a joint piece of property, or when a spouse deposits their inheritance into the joint checking account. If the court finds that a certain property is marital property, but is titled in only one name, the court can still equitably divide the property among the parties. Indeed, a spouse may be awarded property that is titled solely in the name of the other spouse.
The court considers many factors when considering equitable division, including: the contribution of each spouse to the acquisition of the property; the needs of the children are considered, but the needs of the parties are not a factor; marital misconduct is not a factor; and the court will also consider negatively when a party is caught hiding an asset(s), such as a secret bank account. If one of the spouses is a homemaker, the court will consider that as contributing to the marital estate, even if they are not employed outside the home.
When the court considers these factors to equitably divide the property, their decision is final. The judge’s final order determines who gets each property. For some, this is the only way to complete the divorce. However, for others, coming to an agreement on property division on their own is more beneficial. This can be done by the parties themselves, their attorneys, or through a mediator. When parties agree on property division the process can be much shorter and cheaper than going to trial.
Call Attorney Ben Hilfiger at Cook and Hilfiger Law Office for more advice or to represent you in your divorce. (918) 218-2817
Ben Hilfiger
May 11, 2020
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