The property that a couple owns when they get divorced can generally be divided into two categories. First, there is separate property, which doesn’t have to go through property division. These are things that each person owns individually, and the other person does not have a claim to them.
The second category, then, is marital property, which does need to be divided under state law. These are things that the couple owns jointly, so they have to split them up as they divide the other aspects of their life. As you can imagine, this is sometimes a contentious process that can lead to disputes, so legal guidance can be beneficial.
Common examples
Although every divorce case is unique, the following are a few examples of items that are typically marital property:
- Retirement benefits earned during the marriage
- A family home that the couple bought together
- Jointly owned vehicles
- Home furnishings, art collections and other valuable possessions
- Wages and earnings from the marriage
- Other types of compensation, such as bonuses or commissions
- Shared investment portfolios or retirement accounts
- The contents of savings accounts or checking accounts
Property can sometimes move from one category to the other. For instance, an inheritance is often a separate asset at the beginning, because it is a gift from one spouse’s parent directly. But if they share that inheritance with their own spouse, this commingles the asset and means that it is now a marital asset.
Are you moving closer to divorce and property division? As you work your way through this process, be sure you know what legal steps to take.