In many states, couples who are going through a divorce need to split their property into two general categories: marital property and separate property. The marital property will need to be divided because they both own it together. However, they can sometimes keep separate property, such as money or assets they obtained before the marriage.
For those living in Indiana, however, it is very important to know that Indiana is a whole-pot state. This means that it generally does not recognize separate property. Instead, all assets and debts are considered marital property that goes into the same pot and must be divided.
Does this mean they will be split up equally?
No, this does not necessarily mean that all of that property will then be divided equally, such as giving 50% to one spouse and 50% to the other.
Instead, Indiana uses equitable distribution, rather than equal distribution. When couples do not agree on how they should split up their assets and debts, a judge can make a ruling. They will consider all of these marital assets after they have been lumped together, and the judge can then decide what seems fair in that specific case.
This means that there are many different factors that can be considered, such as each person’s income, earning potential, financial needs, roles within the marriage – such as if one person was a stay-at-home parent – and much more.
Because Indiana marital property laws differ from those used in many other states, divorce can be complicated, and it is important for those navigating the process to understand exactly what legal rights they have.
