Indiana uses the concept of equitable distribution to divide property in a divorce. This means the court will fairly divide your marital assets. However, not everything you own is marital property.
According to FindLaw, marital property is that which you obtained during your marriage. Other property you own is separate property and not subject to division in your divorce.
Complications
While it may seem clear cut that certain property is marital and other property is separate due to when you bought it or received it, that is not always the case. You can comingle your asset which can turn separate property into marital property or at least make it partially marital property. It can get confusing quite quickly.
Conversion
You can also convert a separate asset to a marital asset. For example, if you bought the home you and your spouse live in after you married but using funds from an account you had prior to the marriage, then the house and your investment becomes marital property.
Exceptions
There are also exceptions. Some things remain separate property because the law states they are. Inheritances, gifts and payments from a personal injury case are all examples of property the law states are separate. However, you can still comingle these things so that they become marital property.
For example, if you buy a car with your inheritance and it is only your car, then that will remain separate. On the other hand, if you buy a new car for the family with your inheritance, then the court will likely rule the car is now marital property.
