One of the burning questions many couples have when going through a divorce is how their marital assets will be divided. For instance, one spouse may want to keep the house and the other wants to keep the car.
How do spouses keep the assets they want? Often, divorcing spouses can come to an asset division agreement that is amicable for both parties. However, if that doesn’t work, then couples may need to go to court
In court, a judge can decide how marital assets are split. Indiana follows an equitable distribution system. To learn how this works, you should read the following:
Dividing assets equitably
Equitable distribution means that assets are divided based on what is fair instead of dividing assets 50/50. A judge can consider a few factors that affect how much each spouse would receive from a divorce. Some factors to consider include the following:
- Earning capacity, education and skills of both spouses
- Each spouse’s age, medical conditions and financial contributions to a marriage
- The number of minor children and child support obligations
- Length of a marriage
- Tax considerations of property division
What assets are divided equitably? Unlike many other states, Indiana does not recognize separate property and instead follows a “whole pot” asset approach. This means that any assets owned prior to a marriage are part of the marital estate. As a result, all assets in a marriage are divided equitably. This can lead to more conflicts for spouses who desire to keep certain assets in a divorce.
Legal guidance can help prepare people to protect their assets and prepare for their divorce.