While Indiana residents don’t go into their marriages planning on getting divorced, reports indicate that around 36% of marriages end. One of the most common questions couples ask about during their divorce is how to handle the division of their assets. Knowing how to handle the division of bank accounts, real estate and other marital assets ensures you’re setting yourself up for success after your divorce.
Dividing bank accounts
When going through a divorce, it doesn’t matter whose name is on the bank account. Any money earned during the marriage is marital property and is subject to equitable distribution.
There are some exceptions to this rule, however. Any money received through an inheritance or as a gift is not automatically considered marital property. It’s also worth noting that if the account only has one spouse’s name on it, that spouse has the legal right to take all the money out of the account at the beginning of the divorce process.
Dividing real estate
In most cases, if one spouse owns a home before the marriage and doesn’t use marital money for home-related expenses, they get to keep the house after the divorce. However, if the spouse whose name does not appear on the deed invested money in the home, a judge may consider the home marital property. Any home bought during the marriage is marital property.
Dividing debt
Each state has laws in place that determine the division of debt after a divorce. In most cases, debt incurred before marriage belongs to the spouse who incurred it. In Indiana, debt typically gets split equally among both parties involved in the divorce.
In equitable distribution states like Indiana, judges usually try to divide marital assets equally. This ensures that each party is on solid financial ground as they enter their next chapters.