How Is Property Divided in Divorce?

When a marriage ends, marital property must be divided between the spouses. The method depends on your state's legal framework.

Community property states (Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington, Wisconsin): All property acquired during the marriage is presumed to be jointly owned and is divided equally (50/50).

Equitable distribution states (all other states): Marital property is divided "equitably," meaning fairly but not necessarily equally. Courts consider multiple factors to reach a fair result.

Marital vs. separate property:

Marital property — Assets and debts acquired during the marriage, regardless of whose name is on the title.

Separate property — Assets owned before the marriage, inheritances, gifts received by one spouse, and assets excluded by a prenuptial agreement.

Commingled property — Separate property that has been mixed with marital property may be reclassified as marital.

Factors in equitable distribution:

Length of the marriage

Each spouse's income and earning potential

Age and health of each spouse

Contributions to the marriage (financial and non-financial)

Tax consequences of division

Whether one spouse wasted marital assets

Types of property divided: Real estate, bank accounts, retirement accounts, investments, businesses, vehicles, personal property, and debts.

Retirement accounts. Dividing retirement accounts like 401(k)s and pensions often requires a Qualified Domestic Relations Order (QDRO).

This is legal information, not legal advice.