During a divorce, marital property is often divided in a way that the court finds most equitable, which doesn’t always mean equal property division. You also need to consider the type of property. Here is a quick look at the types of property and how they’re treated.
Marital vs Separate Property
You first need to distinguish between marital property and separate property. In most cases, only marital property is subject to property division.
Marital property includes property obtained during the marriage. Separate property typically includes property owned before marriage. Gifts and inheritances received during marriage may also count as separate property.
Real Estate Property
Property division may include the division of real estate, such as the marital home and any investment properties.
Deciding who keeps the home can depend on a variety of factors, such as custody arrangements, financial contributions to the property, and each party’s financial stability after the divorce.
Personal Property
Personal property includes items such as furniture, art, and other household items. Couples often negotiate and choose items that they’re interested in keeping.
Financial Assets
Along with real estate and personal property, you may need to divide financial assets. Examples of financial assets include bank accounts, stocks, retirement accounts, and pensions.
Navigating the division of property is complex and varies widely based on individual circumstances. Hiring a divorce attorney is recommended, even when facing an amicable dissolution of your marriage. An attorney can walk you through the process of valuing and dividing property and help you understand the tax implications.
The bottom line is that marital property is typically divided during divorce. This may include real estate, personal property, and financial assets.
