Divorce is rarely pretty. It’s depressing and disheartening to be in a marriage that isn’t working, even more so when children are involved.
One of the most significant aspects of divorce is the division of marital property, which can be a complex topic. You need to understand how many factors affect this process for optimal results. Before we continue, let’s determine the difference between marital and separate property.
Marital vs. Separate Property
Marital property refers to assets accumulated by the couple during their marriage. It may include paychecks, debts, real estate, employment benefits, and investments.
Separate property refers to assets acquired before the marriage and not part of the assets accumulated during the marriage. Usually, any inheritance or gifts you receive would be separate property.
What Can Influence the Division of Marital Property?
To make things easier, we’ve compiled five factors that can influence the division of marital property in a divorce.
Financial Position and Earning Power of Each Spouse
The financial circumstances of each spouse at the time of divorce will play a vital role in the division of marital property. If one spouse has significantly more wealth and earning power than the other, this will almost certainly influence decisions about dividing the assets and debts.
The judge may consider that the wealthier partner is more likely to be able to support themselves and so will be less keen on awarding them a significant share. They may also consider that the wealthier partner had more time to accumulate wealth because they may have spent fewer hours on family or children than work.
Length of the Marriage and the Circumstances of the Divorce
There are many situations where people split after a relatively short period of marriage, such as if one partner has been unfaithful to the other or spent time in relationships that were not enduring. In these cases, the assets and debts acquired during the marriage may have less significance than they might have had in a long marriage.
A couple that was married for a long time will have acquired more assets together and will be more likely to divide them equally. The judge may also consider the standard of living each spouse enjoyed during the marriage and award assets per that.
Level of Contribution of Each Spouse to the Acquisition of Marital Property
One of the primary considerations the court will have is the role each spouse played in acquiring property during the marriage. Their degree of contribution to all marital assets and debts will likely be an essential factor in determining how they are divided.
For example, if one spouse provided a significant portion of the couple’s income, they may be awarded a larger share of the marital property. The court may also consider spouses’ contributions to specific aspects of the property, such as the house or family business.
Wasteful Dissipation of Assets
Asset dissipation refers to an intentional act that leads to a reduction of marital assets without generating any equivalent benefit.
The court may consider whether spouses’ actions represent wasted marital funds. For example, if one spouse blows money on gambling and lavish vacations, the other spouse may receive a more significant proportion of the marital assets.
Spousal Age and Health Status
A judge may consider a person’s health and age in determining the division of marital property. The court may deem that one spouse is significantly older than the other, which could diminish their ability to acquire more property.
Health concerns are another essential consideration. People can’t earn or save money when seriously ill and with expensive medical bills. For example, if one is significantly older than the other and suffers from severe medical conditions, they may be awarded a larger share of the marital property.
Final Thoughts
Division of marital property is one of the most complex areas of family law. It depends on factors such as contribution level, financial situation and dissipation, age, health, and more.
If unsure how to proceed, it’s always a good idea to speak with a divorce attorney.
