If you and your spouse are heading for a divorce in Indiana, there are some things you should know about property division laws in the state.
Indiana is an equitable distribution state, meaning a judge will determine a fair, or equitable, way to divide assets between you and your soon-to-be ex. Because Indiana laws differ from most other states, it is crucial to have state-specific information to plan for this stage of your divorce.
One pot property division method
Most states classify assets as marital property or separate property. Indiana, however, is not one of those states, adhering to what is often called the “one pot” method of property division. In the Hoosier State, all property, whether acquired before the marriage or during, is eligible for division. This includes assets, such as income, investments, retirement accounts, homes, vehicles, collectibles and inherited items. The distribution of assets is up to a judge unless you and your spouse can reach a divorce agreement outside of court, perhaps through mediation.
Factors that affect a judge’s decision
Determining an equitable distribution of assets is a substantial undertaking, so judges use multiple measures in their decision-making. A judge will consider several factors, such as each spouse’s:
- Marital contributions
- Employment prospects and earning potential
- Expected circumstances after the divorce
- Conduct during marriage
Do not get caught off-guard by Indiana’s unique property division laws. Keep these state-specific rules in mind as you plan for property division and move into the next chapter of your life after divorce.