Divorce property laws

In community property states, the property is divided in a 50:50 proportion. On the other hand, in equitable distribution states, this ratio could be 50:50, 40:60, 30:70 or any other value as the court divides the property in a manner that seems fair to it.

Factors considered in equitable distribution as per divorce property laws

Role as a homemaker

According to the court, keeping a house and bringing up children is work. When one spouse plays the role of a homemaker, this assists the other spouse to earn more money by working outside the house. So, the court considers this role as favorable for the homemaker spouse. If the homemaker spouse can prove that the role of a homemaker has caused to miss a training or employment opportunity that would have resulted in more income, the court awards more property to such a homemaker.

Role as an earner

When a spouse works hard to acquire and maintain a property, this factor is in favor of such an earner, when property distribution is done. Consider that a person owns a family business and the value of the business is almost equal to the value of the family home. In such a scenario, the court generally awards the business to the earner of the business and the family home to the other spouse.

Earning capacity

The court is of the opinion that the spouse who has more earning capacity can regain money lost in a divorce more easily as compared to the spouse with less earning capacity. So, the court awards more marital property to the spouse with less earning capacity.

Non-marital property

Consider a case where one of the spouses has considerably more non-marital property than the other. The court offers more marital property to the less wealthy spouse. In doing so, the court tries that both parties should maintain a comfortable condition after the divorce.

Premarital agreement

By means of a premarital agreement, the husband and wife can plan in advance how the property distribution should take place, in case they are divorced. Such a couple waives its rights to permit a court to consider several factors before splitting the property.

Effects of tax

Consider that as a part of the divorce property distribution, it is essential to sell the residence or stock in a company. This would result in capital gains tax. Then, the spouse who would pay this tax receives more property to make up for the loss due to tax payment. On the contrary, if the divorce proceedings result in a tax saving, the spouse who gets this tax benefit would get less property. As per the law, the court would take into account those tax effects that are specific and immediate and not those that would occur after many years.

Health and Age of Spouses

If one divorcing partner is of considerably more age than the other, the court may assign a larger proportion of the property to the elderly person. Likewise, if one of the spouses is sick, then the court allocates more property to the ill person.

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