Divorce proceedings are naturally different for every couple. The circumstances of the spouses and the reason for the divorce influence what happens at the end of a marriage. Typically, spouses have to divide their shared responsibilities and their assets.
The property division process can be relatively contentious, as both spouses may want to retain the same assets. Sometimes, spouses even disagree about what property is subject to equitable distribution rules.
What resources do spouses have to divide when they divorce?
All marital property is divisible
State statutes treat any property acquired during a marriage as marital property. The income of both spouses is also marital property. Any assets purchased with marital income become part of the marital estate.
Spouses can exclude specific resources from the pool of marital property. Some couples sign prenuptial agreements where they designate specific assets as separate and therefore exempt them from property division proceedings.
People can also protect assets that they owned before marriage as separate property as long as they do not commingle them with marital assets. Property inherited during the marriage and items received as gifts from others can also remain separate property when people divorce.
Most resources acquired during a marriage, regardless of whose name is on the ownership documents, are subject to equitable distribution rules. Identifying separate and marital property can help people prepare for the property division process.