Family Law
FAQ
Separation,Anulment and Divorce
Property
In divorce cases, how often do
judges decide who gets what?
Judges rule on major contested
issues in only a relatively small number of cases. Instead, the parties--often
with help from lawyers--reach an agreement between themselves that they present
to a judge for approval. If the agreement is fair, approval is usually granted
after a short hearing.
How do judges decide disputed
property issues?
Laws vary from state to state. As a
starting point, many states allow parties to keep their nonmarital or
separate property. Nonmarital property includes property that a spouse
brought into the marriage and kept in his or her own name during the marriage.
It also includes inheritances received and kept separate during the marriage. It
also may include gifts received by just one spouse during the marriage. Some
states permit division of separate as well as marital property when parties
divorce, but the origin of the property is considered when deciding who receives
the property. After allocating separate property, the court divides marital or
community property.
What is marital or community
property?
Marital or community property is defined somewhat
differently by different states, but it generally includes property and income
acquired during the marriage. Wages earned during the marriage would be marital
property. A home and furniture purchased during the marriage with marital
earnings or property would usually be considered marital
property.
What if the property obtained during the marriage is in the
name of one party only?
That, too, will usually be
considered marital property if it was paid for with marital funds, such as
wages. For example, if a wife buys a car during the marriage and pays for it
with her wages, the car is marital property, even though it is in her name only.
A pension is also usually marital property, even though it may have been earned
by the labor of only one spouse during the marriage. A pension can be a very
significant piece of property. The pension and the family home are often the
most valuable assets acquired by a couple during the marriage. If a pension was
completely earned before the marriage, it probably would be considered
nonmarital or separate property. Marital or community property can be divided by
the court between the parties.
How does a husband or wife keep
nonmarital property separate and thus less likely to be lost in a
divorce?
The main way to keep nonmarital property separate is to keep
it in one's own name and not mix it with marital property. For example, if a
wife came into a marriage with a $20,000 money market account and wanted to keep
it as nonmarital property, she should keep the account in her own name and not
deposit any marital funds in the account. She should not, for instance, deposit
her paychecks into the money market account, because the paychecks are marital
funds and the deposit could turn the whole account into marital property.
If
a husband inherits some stock from his mother during the marriage and he wants
to keep it as nonmarital property, he should open his own investment account and
should not use the account for any investments that he and his wife own
together.
If a husband or wife decides to use some nonmarital funds for a
common purpose, such as purchasing a home in joint tenancy, that money will
normally become marital property. The courts of most states will view the
nonmarital property as a gift to the marriage. The property distribution laws
have many intricacies and variations between states; understanding them usually
requires a lawyer's help.
How do courts divide marital or
community property?
Again, the answer varies from state
to state. A few states, such as California , take a rather simple approach. They
believe property should be divided equally because they view marriage as a joint
undertaking in which both spouses are presumed to contribute equally, though
often in different ways, to the acquisition and preservation of property. All
marital property will be divided fifty-fifty, unless the husband and wife had a
premarital agreement stating otherwise. Even in California, there may be
complications in the details, such as disputes between the husband and wife
regarding the value of community property and deciding what constitutes an equal
division. Most states, however, apply a concept called equitable
distribution.
What is equitable distribution?
Equitable
distribution means that a court divides marital property as it thinks is
valid, just, and equitable. States applying principles of equitable distribution
view marriage as a shared enterprise in which both spouses usually contribute
significantly to the acquisition and preservation of property. The division of
property could be 50-50, 60-40, 70-30, or even all for one spouse and nothing
for the other (although that would be very unusual.) The percentage distribution
need not be the same for all property, and the percentage entitlement may vary
from one asset to another. Under equitable distribution, courts consider a
variety of factors and need not weigh the factors equally. That gives more
discretion to the judge and more consideration to the financial situation of
both spouses after the divorce. However, it also makes the resolution of
property issues less predictable. There are several factors that are considered
by states applying principles of equitable distribution:
Nonmarital
Property
If one spouse has much more nonmarital property than the other,
that could be a basis for giving more marital property to the less wealthy
spouse.
Earning Power
If one spouse has more earning power than the
other, that could be a basis for giving more marital property to the spouse with
less earning power.
Who Earned the Property
That can be a factor
favoring the party who worked hard to acquire or maintain the
property.
Services as a Homemaker
Courts recognize that keeping a
home and raising children is work. In addition, those services often enable the
spouse who is working outside the home to earn more money. Thus, services as a
homemaker are a factor in favor of the homemaker. Some courts also apply a
related concept of considering whether one spouse had impaired her or his
earning capacity because of working as a homemaker. That factor would also favor
the homemaker-spouse.
Waste and Dissipation
If a spouse wasted
money during the marriage, it could count against him or her when it comes time
to divide property. This factor is sometimes labeled economic fault, and may be
considered even by courts that do not consider other kinds of
fault.
Fault
Noneconomic fault, such as spousal abuse or marital
infidelity, is considered in a few states, but most states do not consider it
relevant to property division.
Duration of marriage
A longer
marriage may be a factor in favor of a larger property award to the spouse with
less wealth or earning power.
Age and Health of Parties
If one
spouse has ill health or is significantly older than the other, that factor
could favor a larger award to the sicker or older spouse.
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