What You Need to Know About Equitable Distribution of Property
Each state has its guidelines regarding equitable distribution of property versus community property. Here’s everything you need to know about equitable distribution.
A judge divides all assets in an equitable distribution state, such as earnings, personal property, and debt. The court determines marital property versus separate property and how to best divide these assets. The court may decide a spouse needs to give something up to the other spouse to compensate for another loss. The decision in an equitable distribution case may not be not equal but rather “fair and equitable.”
Deciding marital property and its worth can be a lengthy process. The court will consider occupation, income, retirement plans, length of a marriage, alimony, age, health, children, and other arrangements in equitable distribution cases. The loss of career opportunities may be considered. Courts also consider fault in a divorce, even in no-fault states. Some states consider marital misconduct when looking at the distribution.
Related: Community vs. Separate Property in Washington State
If spouses agree on how to split their assets before getting the courts involved, they can save time and money and maintain some input on their case results.
What is Considered Property in the Equitable Division?
Equitable property division includes:
- Separate property
- A spouse’s business
- Retirement plans
- 401(k) plans
- Stocks
- Bonds
- Debt
These assets are distributed based on what the court thinks is fair (again not equal).
Related: Equitable Distribution vs. Community Property in Divorce
Equitable Distribution States:
- Alabama
- Alaska
- Arkansas
- Colorado
- Connecticut
- Delaware
- Florida
- Georgia
- Hawaii
- Illinois
- Indiana
- Iowa
- Kansas
- Kentucky
- Maine
- Maryland
- Massachusetts
- Michigan
- Minnesota
- Mississippi
- Missouri
- Montana
- Nebraska
- New Hampshire
- New Jersey
- New York
- North Carolina
- North Dakota
- Ohio
- Oklahoma
- Oregon
- Pennsylvania
- Rhode Island
- South Carolina
- South Dakota
- Tennessee
- Utah
- Vermont
- Virginia
- West Virginia
- Wyoming
Spouses can choose to divide marital property with community property laws in Alaska, South Dakota, and Tennessee.
Contact Us
If you or a loved one would like to learn more about Equitable Distribution of Property, get your free consultation with one of our Property Division Attorneys today!