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People who are going through a divorce have a lot of decisions to make, some of which revolve around the assets and debts they acquired during the marriage. Property division is often one of the most contentious aspects of ending a marriage.
In Indiana, property is divided according to what is equitable. This means that it’s based on what is fair instead of what is equal. What’s equal is sometimes the starting point in these divorces, but that doesn’t mean that it’s how things will end up.
What is considered marital property?
Marital property is anything that came into the marriage with someone, was acquired during the marriage or was acquired jointly between spouses. There are some exceptions to this, such as property that’s covered by a prenuptial agreement or property acquired before marriage that wasn’t ever comingled with other marital assets. In some cases, inheritances may also be an exception from marital property.
How is property divided?
Property can be divided through a variety of methods, including mediation or litigation. While many people focus on dividing assets, they must also determine what’s going to happen to debts. Balancing these out can take time, but it’s often beneficial if this can be done through mutually agreeable methods. If the court has to step in, the length of the marriage, contributions to the household and earning capacity may be considered during the property division process.
What else should you consider?
Another factor that some people don’t consider is how property division may impact their creditworthiness. Even though debts are divided between spouses, the credit issuers don’t have to abide by the court order. Instead, they can continue to hold both parties accountable for balances. Because of this, it’s often best to pay off debts during property division if possible, because if your ex doesn’t pay their assigned debts, it can have a negative impact on your credit.
Every aspect of property division must be considered carefully. Working with someone familiar with these matters may be beneficial so that they can go over the options with you. This will allow you to make decisions that are in your best interests.