Dividing Assets in Divorce
In divorce, dividing assets depends on state law. Community property states split marital property equally, while equitable distribution states divide property fairly, though not always equally. Assets to consider:
Community Property vs. Equitable Distribution
Community Property States
50/50 split of marital property
States:
- • Arizona
- • California
- • Idaho
- • Louisiana
- • Nevada
- • New Mexico
- • Texas
- • Washington
- • Wisconsin
Equitable Distribution
Fair, but not necessarily equal split
Factors considered:
- • Length of marriage
- • Income and earning capacity
- • Age and health
- • Child custody
- • Contributions to marriage
- • Future financial needs
Major Assets to Divide
Family Home
Often the largest marital asset
Sell and Split
Clean break, split proceeds
Buyout
One spouse keeps, pays other half of equity
Co-ownership
Continue owning together (rare)
Retirement Accounts
401(k)s, IRAs, pensions accumulated during marriage
QDRO Required
Qualified Domestic Relations Order allows penalty-free transfer between spouses
Business Assets
Businesses started or grown during marriage
Valuation Required
Professional appraisal needed
Options
Sell, buyout, or co-own
Debt Division
Joint debts and credit cards
Important:
Creditors can still hold both spouses responsible regardless of divorce agreement
Tips for Asset Division
- Create complete inventory of all assets and debts
- Get professional appraisals for valuable items
- Consider tax implications of asset transfers
- Close joint accounts as soon as possible
- Update beneficiaries on all accounts
- Keep detailed records of all transactions
Disclaimer: This information is for educational purposes only and does not constitute legal or financial advice. Every situation is unique. Please consult with qualified legal and financial professionals for advice specific to your circumstances. See our Legal Disclaimer andAdvice Disclaimer for more information.