- November 27, 2024
- CLLB Law
- Estate Planning
Learn More about Equitable Property Distribution
Featured Snippet: Learn how your marital assets, debts, and financial duties will be distributed if you get divorced in Indiana. The general rule is justice and equity as opposed to community property practices.
There are countless reasons to stay in a marriage that no longer makes you happy. You think about your children (if any), what your friends and family might say, your emotional and financial investments, and so on. Sadly, however, there are countless more overwhelming reasons to finally walk away. It may be painful at first, but it could also have long-term benefits.
While enforcing the final decision, the question of who gets what arises. Unlike community property states, Indiana endorses the principle of equitable property division. This means that assets are shared according to the principles of equity.
That being said, if you’re in the process of filing for or finalizing your divorce, there are some things you should know. For instance, you need to learn about marital assets, debts and liabilities, equitable property division, and its underlying principles. You’ll also need a competent legal team that safeguards your interests and claims all your major and minor rights. This way, the process will be seamless, and your chances of a fair outcome significantly increase.
So, are you ready to learn everything you need to know about equitable property distribution in Indiana? Let’s get right to it.
What Is Equitable Property Division and How Does It Work?
Do Assets Get Divided Equally or Equitably?
As mentioned above, the underlying principle for sharing assets, liabilities, and debts in Indiana divorces is based on equity. This means that the assets both parties accumulate during the marriage will be distributed in a just manner (not necessarily 50/50). The assets include:
- Family home
- Pets
- Vacation property
- Club memberships
- 401(k) and retirement plans
- Other valuables that you acquired during the marriage or due to your joint contributions.
Different factors determine who gets what, and they include:
- How long the marriage lasted
- The value of each spouse’s investment in the assets
- The spouse’s economic and earning capacity
- Whether the spouse was wasteful, negligent, or overindulgent where the asset is concerned
After you and your soon-to-be ex-partner submit all the financial records and assets for appraisal, the judge or your mediator will establish the equitable division of assets. Or, you can negotiate what you think is equitable in mediation.
The words “just and equitable,” while determined by the mediator or judge, will be ultimately confirmed by you and your spouse. If either spouse feels cheated and mistreated, it’s that party’s duty to provide evidence to substantiate their claims. For example, they can provide documents or call witnesses to support their arguments.
The bottom line is that any party with evidence of some injustice from the property distribution can call for a redistribution of assets. The same applies to debts.
What Are Marital Assets, Debts, and Liabilities?
Discover the Valuables and Financial Obligations Your Spouse Is Entitled to
Marital assets are valuables purchased or obtained during the marriage. They can be jointly owned, acquired by one of the parties, inherited, or received as a gift. Marital assets refer to every material thing acquired before filing for a divorce.
On the other hand, marital debts and liabilities include credit card debts, mortgages, medical debts, business debts, car loans, and unpaid taxes. Like marital assets, the married couple must have acquired them while they were together.
Note that couples are legally mandated to disclose information about all their marital assets, debts, and liabilities before the property division occurs. That’s why it’s important to understand this aspect of a divorce proceeding properly.
What is Separate Property?
Discover Your Ex-Spouse’s Untouchable Assets, Debts, and Financial Obligations
Separate property is any asset, debt, or liability belonging to one party. In Indiana, there is no such thing as separate property unless it has been identified in a prenuptial agreement.
This type of asset is untouchable by the law and the spouse.
On the bright side, the same applies to separate debt and liabilities. If identified in a prenuptial agreement, no portion of any debt or liability accumulated by one party during the marriage or divorce proceedings will be allocated to the other party.
How Are the Assets Distributed Equitably?
You and Your Spouse Can Stake Claims on the Assets You Want from Your Marriage
A professional appraiser must be part of the process for equitable distribution. They’ll be responsible for determining the value of assets like real estate, your family home, retirement and investment accounts, and other valuables.
Then, you and your spouse can ask for what you want, compromise and make sacrifices, sell certain items, and share the money equitably. There’s an emphasis on equity because sometimes it won’t be just and equitable to divide the assets 50/50.
Do the Courts Have to Divide Your Property for You?
Can You Divide Your Assets without Involving a Judge?
You and your spouse can divide your property without involving a judge or mediator. The courts don’t necessarily have to decide what you get from the marriage.
In most cases, couples only involve the courts when they cannot reach an amicable conclusion on an issue. This is usually regarding who gets what and the post-divorce obligations, especially child support.
Contact Our Indiana Family Lawyers for Top-Notch Legal Representation
You Get What You Truly Deserve when We’re on Your Side
The general rule in Indiana is that both parties get just representation and an equitable distribution. So, if you want to ensure your right to enjoy this principle, our experienced attorneys can come to your rescue.
If you’re about to start the property distribution process, you need a great team of attorneys on your side. Our lawyers at Church, Langdon, Lopp, Banet law firm will inform you of your legal options and guide you on the right steps to take.
Contact us at (812) 725-8226 now for maximum representation and assertion of your rights and claims.
Attorney Steve Langdon
Licensed to practice in both Indiana and Kentucky, Steve Langdon is an experienced elder law and trial attorney. In addition to his litigation and trial work, Steve’s practice includes wills, trusts, probate, Medicaid planning, guardianship, powers of attorney, and advanced directive planning, including living wills and health care surrogate designations. [ Attorney Bio ]