One of the biggest fears people have is that they will lose the house, car and other valuable assets if they file for a divorce. However, asset division is a complicated matter that typically does not cause people to lose everything they own.
If you are filing for divorce, it can help to understand property division laws in Indiana. Here is what you should know:
What is considered marital property?
In many states, assets are categorized into marital and separate property when couples divorce. However, Indiana has a “marital pot” or “one-pot” theory. This means that assets and debts that were acquired before and after marriage are categorized as marital property.
However, couples may have a prenuptial or postnuptial agreement. These agreements can allow couples to keep certain assets if they get divorced. Knowing what assets are part of the marital estate can be essential during the asset division process.
How are marital assets divided in Indiana?
Indiana is an equitable property division state. Equitable division means that marital assets are divided based on what is fair and equitable to both spouses. However, some judges may start with a 50/50 distribution model. This model may be changed based on certain factors, such as the following:
- Each spouse’s contribution to the marriage
- Tax considerations
- Income and earning capacity of each spouse
- Length of the marriage
- Age of each spouse
- Gift and inheritance
- Wasted marital funds
These factors can greatly impact the division of marital assets. Professional legal guidance can help people negotiate asset division during a divorce.