When a couple chooses to end their marriage in Indiana, one of the most critical aspects they must address is the division of property. Indiana follows an "equitable distribution" approach, which means that marital property should be divided fairly between spouses, not necessarily equally. Within property division, the concept of separate property plays a crucial role and has implications for the overall asset distribution.
Understanding Separate Property in Indiana
Separate property refers to assets that an individual owns without any contribution from their spouse during the marriage. These assets can include properties acquired before the marriage, as well as those obtained during the marriage through inheritance or as a gift, as long as they are maintained separately.
Determining whether a specific asset qualifies as separate or marital property involves considering the acquisition and treatment of the asset throughout the marriage.
Treatment of Separate Property in Indiana
Typically, separate property is excluded from the division of assets during a divorce, remaining the sole possession of the individual who owns it. However, complications may arise when one spouse claims separate property intentionally to avoid its division.
In certain situations, separate property may be considered part of the marital estate. This occurs when the owner of the asset commingles it with marital property or when both spouses jointly contribute to maintaining or improving the asset. In such cases, the asset loses its separate property status and becomes subject to division during the divorce.
Instances Where Separate Property Can Be Divided
There are two primary situations where separate property can be divided during a divorce in Indiana:
1. Use of Separate Property for Marital Expenses
If the owner of a separate asset utilizes it to cover marital expenses, that asset can become part of the marital estate. For example, if one spouse utilizes proceeds from the sale of their separate property to pay for the mortgage, utility bills, or groceries, the asset may be considered marital property. In such cases, the courts can allocate a portion of the separate property as part of the overall marital estate.
2. Increase in Value of Separate Property
Separate property can also be subject to division if its value increases during the marriage. If an asset, such as a business acquired before the marriage, experiences significant growth during the marriage, that increase in value might be deemed marital property eligible for division. Moreover, if the other spouse actively contributes to the management, improvement, or maintenance of the asset, their involvement may be seen as a contribution to its growth.
Retaining a Divorce Attorney
Property division is a complex and often contentious aspect of the divorce process, especially when separate property claims are involved. Engaging the services of an experienced divorce attorney can provide invaluable guidance and help you navigate Indiana’s property division laws to safeguard the assets that hold the most significance for you. By working with a knowledgeable attorney, you can ensure that the distribution of marital assets remains equitable while preserving your rights to your separate property.
In Conclusion
Divorce is a challenging and emotionally taxing experience. Gaining a clear understanding of Indiana’s legal implications regarding separate property claims can significantly assist you in navigating the property division process and safeguarding your rights and possessions. Although the rules around separate property claims can be complex, enlisting the support of an experienced attorney can alleviate stress and guarantee a fair and satisfactory settlement of property.