Divorce is an incredibly challenging and overwhelming experience, and the division of property during this period can add an extra layer of complexity and stress. In the state of Indiana, the property division process follows the principle of equitable distribution. This means that marital property is divided fairly, though not necessarily equally, between the spouses involved. In this article, we will delve into the basics of property division in Indiana. We will explore the types of property subject to division, how the court determines which assets and debts are considered marital property, and how the court ultimately decides on their distribution.
Marital Property vs. Separate Property
Before we dive into the intricacies of property division, it is crucial to grasp the distinction between marital property and separate property. Marital property encompasses any property or assets acquired by either spouse during the course of their marriage, regardless of ownership or usage. This encompasses tangible items such as cars, furniture, and jewelry, as well as intangible assets like retirement accounts, stocks and bonds, and intellectual property such as patents and copyrights.
On the other hand, separate property refers to assets acquired by one spouse before marriage or received as gifts or inheritances during the marriage. If these assets have been deliberately kept separate from marital assets, they are considered separate property. Furthermore, parties can designate certain assets as separate property through a prenuptial or postnuptial agreement.
It is important to take note that even if property is initially considered separate, it can become co-mingled with marital property if it is not kept segregated. For instance, if one spouse deposits an inheritance into a joint bank account, it may risk losing its separate property status and become subject to division as marital property.
Equitable Distribution
In Indiana, the court follows the principle of equitable distribution when dividing marital property. This means that the division aims to be fair but not necessarily equal. Unlike some states that operate under community property laws, where marital property is split equally between the parties, Indiana considers various factors in determining fair distribution.
When determining how to divide marital property, the court takes multiple factors into account. These factors include the duration of the marriage, the individual contributions of each spouse, the assets and debts of both parties, and other relevant factors such as the health and earning capacity of each spouse.
Factors Considered by the Court
The Indiana court considers several specific factors when dividing marital property. These factors include the length of the marriage, each party’s income, earning capacity, and other financial resources, the standard of living established during the marriage, the educational background, job skills, and employability of each party, the contributions of each spouse to the marriage, including homemaking and child-rearing, the economic circumstances of each party, whether one spouse contributed to the other’s education or career, the potential tax consequences of the property division, and the specific needs of each party, such as medical or educational needs.
Based on these factors, the court will make a determination on how to divide the marital property in a manner that is fair and equitable to both parties. It is important to note that equitable does not equate to equal; the division should be fair given the unique circumstances of the case.
Debts and Liabilities
In addition to dividing assets, the court in Indiana also addresses the division of liabilities and debts between the parties involved. These can include mortgages, car loans, credit card debt, and medical bills. Similar to assets, the court aims to divide debts and liabilities fairly, considering the same factors as with assets.
Conclusion
Divorce is undeniably an emotionally draining process. However, having a solid understanding of the basics of property division in Indiana can help navigate this difficult period more smoothly. In general, the court divides assets and liabilities equitably, taking into consideration a variety of factors such as each party’s contributions to the marriage, financial circumstances, and individual needs. If you find yourself going through a divorce in Indiana and have concerns regarding property division, it is strongly recommended that you seek guidance from an experienced divorce attorney. They can provide invaluable assistance throughout the process, ensuring your rights are well-protected.