Many people assume that if a valuable piece of property like a car, home or bank account is titled in their name and their name only, they’ll get to keep it in the event of a divorce. But this is not a safe assumption. A divorce judge will look to various factors in determining whether an asset will be considered part of the marital estate and divided between spouses accordingly.
If you’re divorcing in an “equitable distribution” state (which is a majority of states), courts divide property by looking at factors like the length of the marriage, each spouse’s needs going forward and the financial contributions each spouse made to the marriage with the goal of coming up with a fair split. When determining whether an asset, including an asset titled in one spouse’s name, is subject to division, the judge will consider when the asset was obtained. If it was acquired during the marriage, it will likely be part of the marital estate regardless of who holds title, particularly if it was acquired with marital funds. On the other hand, if one spouse brought a particular asset into the marriage, that spouse will likely keep that asset in the divorce.
In “community property” states, property that either spouse acquires during marriage becomes a marital asset, with each spouse owning a 50-percent share, though this likely wouldn’t apply to gifts and inheritances that specifically go to one spouse. That means if you are married and buy a house, your spouse will own half, even if you are the only one with your name on the deed. If you keep the house, your spouse will be compensated with other assets. If the house is sold, your spouse will likely get half the proceeds.
Of course, this is just the tip of the iceberg. The unique laws of each state and the complexities of each couple’s situation can complicate the situation. If you have questions, talk to an attorney where you live.
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