When a marriage ends, one of the most complex and often contentious issues is the division of marital assets. In Indiana, the court plays a crucial role in determining how these assets will be divided between the spouses. However, it is important to understand the scope of the court’s authority and the factors considered in making these decisions. An experienced family law attorney can help you understand the legal ramifications associated with property division in a divorce. This blog will discuss the court’s role in dividing marital assets in a divorce matter in Indiana.
In Indiana, marital assets are generally defined as any property, assets, or debts acquired by either spouse during the course of the marriage. This includes real estate, investments, retirement accounts, businesses, and personal property. Assets owned by either spouse before the marriage, or inherited or gifted assets, are typically considered separate or non-marital property. According to Indiana law, “[t]he court shall presume that an equal division of the martial property between the parties is just and reasonable.”
Indiana is an “equitable distribution” state, which means that the court has the authority to divide marital assets in a fair and equitable manner, but not necessarily an equal 50-50 split. The court considers several factors when determining an equitable distribution. The court will consider, “[t]he contribution of each spouse to the acquisition of the property, regardless of whether the contribution was income producing. The extent to which the property was acquired by each spouse: (A) before the marriage; or (B) through inheritance or gift.” The economic circumstances of each spouse at the time of the division and the conduct of third parties during the marriage as it relates to the disposition or dissipation of assets. The court will also consider the earning abilities of the spouses. The court’s primary goal is to achieve a fair and equitable division based on the specific circumstances of each case.
While the court has broad authority in dividing marital assets, there are certain limitations on its powers. The court cannot invade or divide separate or non-marital property owned by one spouse before the marriage or acquired through inheritance or gift. The court cannot order the division of assets in a way that would violate the existing contractual obligations or legal rights. Also, courts cannot divide certain types of assets, such as Social Security benefits or certain types of pension plans, which are governed by federal law. If you find yourself in a circumstance in which the division of property was not proper, you can then take the matter up on appeal.
In some cases, couples may have entered into a prenuptial or postnuptial agreement that outlines how their assets will be divided in the event of a divorce. If these agreements are valid and enforceable under Indiana law, the court is generally bound by their terms when dividing marital assets. For the court to make an equitable distribution of marital assets, it is crucial that both spouses fully disclose all assets, debts, and financial information. Failure to do so can result in serious consequences, including sanctions or even the invalidation of the final property settlement. The division of marital assets can be a complex and emotionally charged process. It is essential to seek the guidance of an experienced Indiana family law attorney who can protect your rights, advocate for your interests, and ensure that the court’s decisions are fair and equitable based on your specific circumstances.
In conclusion, while the court has significant authority in dividing marital assets in Indiana, some limitations and factors must be considered. Understanding the court’s role and the principles of equitable distribution can help you navigate this process more effectively and achieve a fair and reasonable outcome. The attorneys at Ciyou & Associates, P.C. have a strong background in family law matters regarding the marital division of assets throughout the state of Indiana. We are here to help you in your divorce matter. This blog was written by attorneys at Ciyou & Associates, P.C., and this blog is not intended as specific legal advice or solicitation of services as this is an advertisement.
