This means that when dividing property during a divorce, the courts are concerned with achieving a settlement that is fair to both parties. What is important to remember is that equitable distribution does not always mean that property is divided equally or in a 50/50 split. Equitable distribution rules are outlined by Florida Statute 61.075.
What is equitable distribution in divorce?
What is Equitable Distribution? - FindLaw What is Equitable Distribution? Family courts in most states divide marital property according to what's fair, or equitable, for both parties during a divorce.
How do I get the most equitable divorce settlement in NJ?
That's why you’ll get the most equitable divorce settlement by mediating with us. "New Jersey is an equitable distribution state, and so is Illinois, Pennsylvania, New York, Michigan, and 36 other states. So whatever the parties deem to be fair and equitable is how their marital property and liabilities will be divided.
What does equal mean in a divorce settlement?
When negotiating a divorce settlement it's imperative that you understand that "equal" doesn't mean a 50/50 split. Equal means what is fair to both parties involved. You won't get everything you believe you are entitled to and, you will need to be able to compromise for the sake of all involved.
Is the equitable division of marital property always an equal division?
No. An equitable division of marital property is not always an equal division. Rather, the court will divide property between spouses in a way that it considers fair. In the majority of cases, a fair division will be an equal (50/50) division.
How is equity paid out in a divorce?
A couple owe $100,000 on a house appraised at $400,000. That means their equity is $300,000 (the $400,000 home value minus the $100,000 owed). If they split the equity equally, they each have $150,000 in equity.
What is an example of equitable distribution?
The following are examples of Equitable Distributions: Spouses receive an equitable ownership interest in the marital home. Spouses receive an equitable division of assets accrued during the marriage.
Is my ex entitled to half the equity?
If you contributed to the upkeep or improvement of the home, or if marital funds were used to pay the mortgage, then yes, you would be entitled to a portion of the equity. You should talk with an attorney in your area who can look at all of the financial information and tell you what to expect.
What are the two major factors in the equitable distribution of property?
Generally, no. Property is divided into two groups: marital property and separate property. The latter is property acquired before the marriage or inherited or received as a gift from a third party during the marriage. Only marital property is subject to equitable distribution.
What is difference between equal and equitable distribution?
The key to understanding the difference in distribution models lies in the words themselves. “Equal” essentially means that everyone will be given the same amount or opportunity. “Equitable,” in modern parlance, is a way of dividing things more fairly.
What does Equitable mean in law?
Equity is understood by others as a better form of justice due to giving a specific judgement. Equity can be understood generally as justice and fairness. Arguably this can only be achieved if there is certainty within the law, as without the strict rules of law there would not be universal justice and fairness.
How do you avoid losing your house in a divorce?
In many cases, the simplest way to keep the house in a divorce if it still has a mortgage is to refinance. The best-case scenario is for you to refinance and remove the mortgage from your ex's name altogether. You'll need to qualify for the mortgage on your own, so make sure to have all your financial ducks in a row.
Who makes house payment during divorce?
Everything that you and your spouse purchase and/or acquire over the course of your marriage is marital property – regardless of who makes the purchase, whose name is on the deed, or who makes the payments. The very few exceptions to this rule include: Inheritances made in one spouse's name alone.
How is the house split in a divorce?
California is a community property state, not an equitable distribution state. This means that any assets or property gained during the course of a marriage belong equally to both spouses and, therefore, the property must be equally divided between the two spouse by the court in a divorce.
Can wife claim property after divorce?
If a spouse is awarded the immovable property registered in the counterpart's name, the spouse's interest in the property is protected by his or her personal right acquired by the divorce order. The counterpart cannot sell the property and the property is protected from creditors until the deed of transfer is effected.
What states are equitable distribution states?
States With Equitable Distribution Community property states in the U.S. are Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington, and Wisconsin.
What is equitable division and how does it work?
Equitable distribution is a principle in divorce law governing the allocation of marital property between spouses. In states that use equitable distribution, courts try to achieve a fair allocation of property based on a list of factors or guidelines set forth by state law.
What is meant by equitable distribution?
Equitable distribution is a principle in divorce law governing the allocation of marital property between spouses. In states that use equitable distribution, courts try to achieve a fair allocation of property based on a list of factors or guidelines set forth by state law.
What is meant by equitable distribution of income?
Equitable distribution of income means that income is distributed in a way that ensures fairness and allows everyone to have the same opportunities.
How do you achieve an equitable distribution of income?
Solutions to an Equitable Distribution of Income A good short-run solution would be a progressive tax system with transfer payments, such as subsidies, unemployment benefits and disability benefits. By taxing higher income groups more than lower-income groups, the income can be redistributed from the rich to the poor.
What is equitable distribution in primary health care?
Equitable distribution of health care – according to this principle, primary care and other services to meet the main health problems in a community must be provided equally to all individuals irrespective of their gender, age, caste, color, urban/rural location and social class.
How does dividing assets work?
After all assets have been identified, the couple, their lawyers, and the courts will work towards dividing that property in a way that is fair to both parties. When doing this, the goal is to achieve a balance in the value of assets awarded to each party. Instead of dividing every asset in half, the courts may award one larger asset to one person, while several other smaller assets are awarded to the other to achieve balance. The process is similar when it comes to dividing shared debt.
What does the court consider when deciding whether to give one spouse exclusive possession of the family home?
When making this decision, the courts will consider whether it is in the child's best interest, whether it is financially feasible, and whether giving one spouse exclusive possession of the family home is in service of an equitable agreement.
What is the Florida law on equitable distribution?
Equitable distribution rules are outlined by Florida Statute 61.075. According to this statute, the courts are required to begin property division "with the premise that the distribution should be equal, unless there is a justification for an unequal distribution." When determining whether is justification for an unequal distribution, the courts consider several factors.
What is mixed property?
In some cases, this is fairly straightforward, but it is not uncommon for couples to also have mixed property (property that is a combination of both separate and marital property). An example of this would be a trust fund that under ordinary circumstances would be classified as individual property but which is partially funded using marital funds. Retirement accounts also often fall under the mixed property category.
Is Florida an equitable distribution state?
What is important to remember is that equitable distribution does not always mean that property is divided equally or in a 50/50 split.
How to determine equitable distribution?
When courts are tasked with determining equitable distribution, they'll generally consider the following factors: 1 Duration of the marriage; 2 Which spouse has primary custody of minor children; 3 The financial needs and liabilities of each spouse, present and future (for instance, one party may need to invest in a college degree in order to earn a decent wage); 4 The financial well-being and earning potential of each spouse, present and future; 5 Amount contributed by each spouse to the combined marital property; 6 Non-monetary contributions to the family (such as child-rearing, unpaid work on the home, etc.); 7 Age, health, and special needs of each spouse; 8 Child and/or spousal support obligations of either spouse for previous relationships; 9 Total value of each spouse's separate property (again, this isn't subject to division, but does factor into the overall determination); and 10 Adverse actions by each spouse (such as gambling debts, extramarital affairs, or instances of domestic violence).
What happens if you can't reach an agreement on your marital property?
If the parties are unable to reach an agreement, the courts will use their discretion (within the parameters of state marital property law) in order to reach a resolution.
What happens if one spouse gives up their career?
For example, if one spouse gave up their career in order to stay home and raise children and therefore would have a difficult time earning a living after the divorce, the court may award that party a larger cut of the marital property. Conversely, if one spouse was abusive or otherwise at fault for the failure of the marriage (even in a "no-fault" divorce ), the court may award them a smaller percentage of the marital property.
What is common law property division?
In common law property states, courts take a much more delicate approach to property division. Instead of automatically dividing marital property down the middle, these states take a step back and consider what would be the most fair to both parties. This includes consideration of separate property as well as marital property, the needs and means of each party, and factors suggesting fault (such as an affair or domestic abuse).
How is equitable distribution determined?
The equitable distribution of property is determined on a case-by-case basis, subject to negotiation between the two parties and the discretion of the judge . If you're getting divorced in a common law property state (where equitable distribution is recognized), you'll want to understand how property division will be determined.
Which states have community property?
In the nine community property states, which include California and Texas, marital property (generally, all property acquired during the marriage) is divided fairly equally. This is done regardless of who contributed more to the marriage, who has more separate (or individual) property, or whether one of the spouses is largely to blame for ...
Is divorce a complicated process?
Divorce is a complicated, emotionally charged process for most. It can sometimes be difficult to maintain a cool head and make the right decisions for you and your family, which is why legal counsel is strongly encouraged. If you're getting divorced in a state that recognizes equitable distribution of property, your best option is to work with a local divorce attorney.
What happens if a spouse hides property during a divorce?
Any spouse who misuses or purposely tries to hide or sell off property during the divorce may have committed marital waste. These actions will be taken into consideration by the court during the equitable divorce process.
What happens if you and your spouse disagree on your property?
If you and your spouse have trouble coming to a full agreement on your property, a court can help you decide according to equitable distribution laws. The court will only do so on areas of the estate that you can not agree with your spouse.
What is equitable distribution?
Simply put, equitable distribution is the division of assets of the divorcing couple. There are many different circumstances and definitions involved in equitable distribution that are important to know before moving forward in your divorce. Learn more about what equitable distribution is and how it may affect your divorce.
What is marital property?
The property that was acquired during the marriage is defined as marital property. This usually includes land, homes, and large purchases made by the couple sometime throughout their marriage. However, marital property does not include any property obtained through gifts, bequests, or those given according to a written agreement.
Is marital debt considered property?
Marital debt is often part of marital property. Any debt that occurred over the course of the marriage becomes the responsibility of both spouses. Equitable distribution takes into consideration the current outstanding debt of the couple combined, as well as other factors involving finances.
Is equitable distribution equal?
No, equitable does not mean equal. An impartial judge will decide what is fair, depending on different factors involved in the equitable distribution process.
Is a spouse's behavior considered part of the equitable distribution process?
The personal actions of a spouse are not usually part of the equitable distribution process. However, a spouse’s behavior will be taken into consideration if it impacts the marriage finances.
What is Equal Division?
This approach is also known as community property law. The theory of community property begins with the idea that marriage is an “economic community.”1 This means that for the duration of the marriage, anything earned or obtained by one spouse (except for gifts and inheritances) belongs to the community. This includes everything from furniture to vehicles to retirement accounts. According to the philosophy of equal division, assets and debts get split 50/50 in a divorce.
What if one spouse gave up his or her career to raise the children?
What if one spouse gave up his or her career to raise the children — a decision that likely affected his or her potential to earn income? In this case, a judge might give the spouse who stayed home a greater share of the estate.4 A judge might also consider the length of a marriage. If one spouse has a lot of money, for example, and the couple has only been married for several months, a judge might hesitate to split things evenly. A judge might also consider each spouse’s health. If, for example, one spouse has a chronic condition that requires expensive medical care, that spouse might be likely to receive a greater share of the marital estate.
What to do if you are not married?
If you’re not married yet and you think your state’s divorce laws aren’t fair, you may want to discuss a prenuptial agreement with your potential spouse. This is, essentially, an agreement you enter into before you get married that outlines the terms of a potential divorce.
What happens if you don't decide how to split your assets?
If you and your spouse can’t decide on how to split everything you jointly own, including assets and children, the court will decide for you.
What does equal mean in math?
Equal is more mathematical, formulaic; it refers to splitting things evenly, down the middle.
Does equal distribution apply to alimony?
Equal distribution applies only to the division of property; it doesn’t mean that judges don’t consider individual circumstances when they’re making decisions about alimony payments and child support payments. The 50/50 split also does not extend to separate property, which is the term for property acquired before the marriage, or gifts or inheritances received at any time.4
Does a court split your assets equally?
Depending on the state you reside in, the court will either split your assets equally or equitably. Anyone who pays attention to matters of social justice will know that these are dramatically different words.
What factors affect equitable distribution of assets?
The income of both spouses, the presence of children, and even the length of the marriage or other factors that a judge takes into consideration before making that decision. If a spouse was relying on their former partner as a full or partial caretaker, this could also impact the equitable distribution of the couple’s assets.
How much of a spouse's assets can a spouse with a higher income get?
As previously mentioned, it wouldn’t make sense for a spouse with a much higher income to gain access to exactly 50% of marital assets.
What does a judge focus on in a divorce?
In general, though, you’ll find that the judge will focus primarily on equitably distributing the assets a couple has.
What is spouse's debt?
Interestingly, a spouse’s debt is one of the possessions that the court could require to be evenly distributed between the two parties. This is especially common if one spouse makes far less money than the other but also has a far higher amount of debt.
How to avoid unfair distribution?
Fortunately, you can avoid experiencing an unfair equitable distribution by coming to an agreement with your former partner over who is entitled to the property. In many cases, these conversations could allow you to resolve major issues on your own without a judge making a decision that could negatively impact you.
Is marital misconduct irrelevant?
2. Marital Misconduct Is Irrelevant. It’s not uncommon for a spouse to argue against a judge’s decision due to their former partner’s marital misconduct. They may even attempt to use this factor as leverage as soon as the divorce is in progress.
Can separate property become an asset?
Separate Property Could Sometimes Become a Marital Asset. More often than not, the judge won’t consider separate property while making their decision regarding equitable distribution. However, it’s not impossible for separate property to become a part of the process under certain circumstances.
How is marital property valued?
Marital property is typically valued by its fair market value at the time the marital litigation is filed or commenced . However, because a period of months or years may elapse before a divorce decree becomes final, some states allow the parties to share in the appreciation or depreciation of marital assets between the date of separation and the date of divorce.
How to divide property?
A court will review a number of factors in determining how to divide marital property. For example, a court may consider: 1 The financial condition and earning power of each spouse. 2 The value of each spouse's separate property, including a spouse's business, business interests, retirement plans, 401 (k) plans, stocks, bonds, etc. 3 The degree to which each spouse contributed to the acquisition of marital property. 4 The degree to which each spouse contributed to the education and earning power of the other spouse. 5 Future financial needs and liabilities of each spouse. 6 The ages and overall health of each spouse. 7 The liquidity of marital property. 8 Premarital and prenuptial agreements. 9 Spousal maintenance or alimony obligations.
What is not considered in equitable distribution of marital property?
A court typically will not consider adultery, alcohol and drug abuse, domestic violence, or involvement in other criminal activities when making an equitable distribution of marital property. A spouse's behavior will be relevant, however, if it impacts the couple's finances.
What is equitable distribution?
Equitable distribution is a method of dividing property at the time of divorce. All states except for Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington and Wisconsin follow the principles of equitable distribution.
What is fair division in divorce?
Rather, the court will divide property between spouses in a way that it considers fair. In the majority of cases, a fair division will be an equal (50/50) division. In other cases, however, the judge may decide to award one spouse a greater percentage of the marital property.
What is the financial condition of each spouse?
The financial condition and earning power of each spouse. The value of each spouse's separate property, including a spouse's business, business interests, retirement plans, 401 (k) plans, stocks, bonds, etc. The degree to which each spouse contributed to the acquisition of marital property.
Is a gift to a third party considered marital property?
No. While gifts given to one spouse by a third party are considered that spouse's separate property, gifts given by one spouse to another spouse are considered marital property subject to the laws of equitable distribution.
Will you come to a fair resolution at the end of your marriage?
In the hope of helping those who are in the dark about what is and isn’t fair, here is a collection of examples of different scenarios and what we believe to be fair divorce settlements .
How long does Joan have to pay spousal support?
Divorce Settlement: The marital assets are split 50/50 and Joan is ordered to pay Mark rehabilitative spousal support for a term of five years. The long-term marriage established a lifestyle that both Mark and Joan had become accustomed to.
What did Katy fight for?
Katy fought for custody and against spousal support. Lance was able to give evidence during divorce court that showed Katy had little interest in her children and would not be able to care for them due to her work/travel schedule.
Why did Grace want a marital home?
Grace wanted the marital home because the equity in the home is more than she could have gotten if there has been a basic 50/50 split in marital assets.
How long have Ken and Jan been married?
Ken and Jan. Marital Profile: Ken and Jan have been married for five years and have no children. They both entered into the marriage with established careers, earning similar salaries. Divorce Settlement: The marital assets are split 50/50 between the spouses. There is no spousal support or child support .
Why was the marital assets split 60/40?
The marital assets were split 60/40 in Lance’s favor because the judge felt that Lance, being the lower income earner and caretaker of their children should continue to live the standard of living he and his children had become accustomed to.
Why did Mark's standard of living decrease after a divorce?
Mark's standard of living will decrease once there is a divorce due to the fact that he makes less than Joan. The two went to mediation and Joan chose to pay temporary spousal support that is deductible at tax time rather than splitting assets in John’s favor.
