How are assets divided in a divorce?

Asset division in divorce depends primarily on whether you live in a community property state or an equitable distribution state. In the nine community property states (Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington, and Wisconsin), most assets and debts acquired during the marriage are generally considered equally owned by both spouses and are typically split 50/50.

In equitable distribution states, which make up the majority of jurisdictions, courts divide marital property in a manner that is considered fair, which does not necessarily mean equal. Factors that courts commonly consider include the length of the marriage, each spouse's income and earning capacity, contributions to the marriage (including homemaking), the age and health of each spouse, and the standard of living established during the marriage.

In both systems, separate property, meaning assets that one spouse owned before the marriage, received as a gift, or inherited, is generally not subject to division. However, if separate property was commingled with marital property, it may lose its separate character.

Common types of assets divided in divorce include the family home, bank accounts, retirement accounts and pensions, investment portfolios, vehicles, business interests, and personal property.

Understanding the distinction between community property and equitable distribution is often the first step in understanding what a fair outcome might look like in your state.

DIVORSAY's ClearSplit calculator lets you input your assets and debts and see how they might be divided based on your state's approach, completely free.