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Equitable Distribution FAQ1. What is equitable distribution? Equitable distribution means dividing the marital estate, which includes marital property and marital debt, in a manner which is fair. Equitable distribution does not necessarily mean a 50/50 split, but the percentages depend upon the facts of each case. In some cases 50/50 might be fair, but often other percentages would be fair. 2. What are the factors a court would consider in deciding what percentage of property and debt should go to each spouse? 1. The length of the marriage. 2. Any prior marriage of either party. 3. The age, health, station, amount and sources of income, vocational skills, employability, estate, liabilities and needs of each of the parties. 4. The contribution by one party to the education, training or increased earning power of the other party. 5. The opportunity of each party for future acquisitions of capital assets and income. 6. The sources of income of both parties, including, but not limited to, medical, retirement, insurance or other benefits. 7. The contribution or dissipation of each party in the acquisition, preservation, depreciation or appreciation of the marital property, including the contribution of a party as homemaker. 8. The value of the property set apart to each party. 9. The standard of living of the parties established during the marriage. 10 The economic circumstances of each party at the time the division of property is to become effective. 10.1 The Federal, State and local tax ramifications associated with each asset to be divided, distributed or assigned, which ramifications need not be immediate and certain. 10.2 The expense of sale, transfer or liquidation associated with a particular asset, which expense need not be immediate and certain. 11. Whether the party will be serving as the custodian of any dependent minor children. 3. May the court consider marital misconduct in deciding equitable distribution? No (but marital misconduct could be relevant to alimony). 4. What is marital property? In order for property to be divided between the spouses in a divorce case, it must be marital property. Marital property means all property acquired by you or your spouse from the date of marriage until the date of final separation, reguardless of who holds title, with several important exceptions. Marital debt means debt acquired during the marriage and before the date of final separation, reguardless of whose name is on the particular debt. For example, if you have a car in your name only which you bought after the marriage and before separation, the car is marital property, unless it falls within one of the exceptions set forth in the Divorce Code. It doesn't matter that your spouse's name is not on the title with regard to whether it is to be "counted" in equitable distribution. (However, the title is still a factor with regard to possession and insurance issues, so discuss questions about car titles with your attorney.) People often don't realize that a pension can be marital property. There are techincal issues regarding valuation of a pension which you should discuss with your attorney. This is not a complete explanation of all that can be included in marital property. There are also important exceptions to what is considered marital property. You should have an attorney review your assets and debts and evaluate which of them would be subject to equitable distribution. |
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