Property Division In Divorce: 7 Things To Know

Division of property is often one of the most contentious issues when going through a divorce. In many cases, both parties have a significant financial interest in the assets acquired during the marriage, and deciding how to divide them can be difficult. 

An equitable distribution to one party may not be viewed as such by the other spouse, and this could drag the process. Therefore, it is crucial to understand the laws and regulations governing property division in this context.

If you are going through separation or are planning to file one, there are several things to know about property division. Here are some tips to help you navigate the process effectively:

Property Division In Divorce

1. Understand Your State’s Property Division Laws

Understanding your state’s property division laws is crucial in ensuring that you get a fair outcome. The law can be straightforward in some jurisdictions, while other states have additional considerations when dividing marital assets.

It helps to visit this website or consult a divorce attorney to learn more about the subject.

In the United States, for example, two primary property division systems are used in divorce cases: community property and common law property.

Community property laws divide all property acquired during the marriage equally between spouses, while common law property laws consider various factors when dividing marital assets.

Community Law Property

Community property is used in nine states, including Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington, and Wisconsin.

Under this system, all assets and liabilities acquired during the marriage are considered community property and divided equally between spouses upon divorce. This includes income, real estate, personal property, and debts.

Common Law Property

Common law property, also known as equitable distribution, is used in 41 states. In these locations, the courts may consider factors such as the length of the marriage, the contributions of each spouse to the marriage, and the needs of any children involved, when deciding such cases. As a result, one party may receive more than the other, depending on specific circumstances.  

That being said, these legal systems can significantly impact how marital assets are divided. Generally, common law property laws are more flexible than community property laws, allowing for greater discretion in property allocation.

2. Know What Property Is Subject to Division

Knowing what property is subject to division can help you avoid disputes during divorce proceedings. In general, separate property or assets acquired before marriage are not subject to partition. Similarly, inherited properties are often treated as separate from marital assets, excluding them from property division.

However, if such assets are commingled with marital property, they may become subject to asset partition in divorce proceedings. It’s important to keep these properties separate to avoid issues in the future.

3. Determine The Marital Property Value

Determining the value of marital property helps ensure a fair outcome. Appraisals, financial statements, and other documentation must be gathered to determine marital property value.

Hiring a financial expert can help simplify complex financial issues and accurately assess marital assets. This can be especially important when dealing with high-value properties like real estate, businesses, and investments.

4. Consider Tax Implications

Tax implications can have a significant impact on asset partition during a divorce. For example, transferring certain financial instruments like retirement accounts or investment properties may result in tax consequences.

Therefore, considering these implications when negotiating a settlement agreement or going to court for resolution is crucial to your financial future. Consulting a tax professional can help you understand the implications of property division during and after the dissolution of marriage.

5. Negotiate a Settlement Agreement

Negotiating a settlement agreement can be less expensive and time-consuming than going to court. A settlement agreement can include provisions for property division, spousal support, child custody, and child support.

Working with an experienced divorce attorney who can help you negotiate a fair settlement agreement is crucial in achieving the best legal outcomes.

6. Be Prepared For Litigation

If a settlement agreement cannot be reached, property division issues may need to be resolved in court. It’s important to be prepared for litigation by gathering all necessary documentation and evidence to support your case.

This may include financial and income statements, appraisals, and other documentation. Your lawyer will guide you and represent your interests before the courts.

7. Know The Other Factors Affecting Asset Division

When deciding about property division before the courts, several factors are considered. These factors may vary depending on the state where the divorce is taking place. In general, these include:

  • The length of the marriage
  • The spouses’ age and health
  • The income and earning capacity of each party
  • The contributions of each spouse to the marriage
  • The needs of any children involved
  • The nature and time of acquisition of a property

As mentioned, property division laws can vary widely from one jurisdiction to another. Knowing which laws are applicable in your situation can help avoid surprises and frustration when dealing with this legal procedure.

Final Thoughts

Property division is a complex and often contentious issue in divorce proceedings. By understanding the relevant laws and regulations and the factors that courts consider when dividing property, you can approach your divorce proceedings with confidence and clarity.

Whether subject to the community or common law property laws, working with an experienced divorce attorney can help you navigate the legal landscape and ensure the best outcome. Moreover, the tips above can help ease your worries during divorce, making the healing process less arduous.

Julie Higgins
Julie is a Staff Writer at She has been working in publishing houses before joining the editorial team at momooze. Julie's love and passion are topics around beauty, lifestyle, hair and nails.