what is considered marital property in indiana

3 min read 27-12-2024

what is considered marital property in indiana

Meta Description: Understanding Indiana's marital property laws is crucial during divorce. This comprehensive guide clarifies what's considered marital property—from assets acquired during the marriage to the complexities of commingled funds—helping you navigate this challenging process. Learn about exceptions, separate property, and the division process for a smoother divorce.

Indiana is an equitable distribution state. This means that in a divorce, marital property will be divided fairly between the divorcing parties. However, "fair" doesn't always mean "equal." The court will consider various factors when determining how to divide the marital assets. Understanding what constitutes marital property is the first crucial step in a divorce proceeding.

What is Marital Property in Indiana?

Marital property encompasses all assets acquired by either spouse during the marriage. This includes everything from the obvious, like a jointly owned home, to less obvious assets. The key is the timing of acquisition. It doesn't matter who earned the money; if it was acquired during the marriage, it's generally considered marital property.

Examples of Marital Property:

Real Estate: Homes, land, rental properties purchased during the marriage.
Bank Accounts: Joint and individual accounts containing funds earned during the marriage.
Retirement Accounts: 401(k)s, IRAs, and pension plans accrued during the marriage. (Note: the increase in value during the marriage is marital property).
Investments: Stocks, bonds, and mutual funds acquired during the marriage.
Vehicles: Cars, trucks, motorcycles, boats purchased during the marriage.
Personal Property: Furniture, electronics, jewelry, and other household items.
Businesses: Businesses started or acquired during the marriage.
Debts: Credit card debt, loans, and other financial obligations incurred during the marriage.

Important Note: The increase in value of separate property during the marriage is often considered marital property. For example, if one spouse owned a house before the marriage, and its value increased during the marriage, the increase in value is likely marital property.

What is NOT Considered Marital Property in Indiana?

Certain assets remain separate property and are not subject to division in a divorce. These are often referred to as "non-marital assets."

Examples of Separate Property:

Property Owned Before the Marriage: Anything owned by a spouse before the marriage remains their separate property.
Gifts or Inheritance Received During the Marriage: Gifts or inheritances received by one spouse during the marriage are usually their separate property.
Personal Injury Settlements: Compensation received for personal injuries sustained during the marriage generally remains separate property.

Commingled Property: A Complication

Things get more complicated when separate and marital property become mixed, or "commingled." For instance, if separate funds are deposited into a joint bank account, tracing the source of the money becomes critical. The court will attempt to determine which portion of the commingled assets are marital and which are separate. Thorough financial documentation is crucial in these situations.

How is Marital Property Divided in Indiana?

Indiana courts strive for an equitable, not necessarily equal, distribution of marital property. The court considers various factors, including:

The contribution of each spouse to the marriage. This can include financial contributions as well as contributions as a homemaker.
The economic circumstances of each spouse. The court will consider the financial needs and resources of each spouse after the divorce.
The dissipation of marital assets. If one spouse has wasted marital assets, the court may consider that in the division of property.
The value of each spouse’s separate property. The court takes this into account for a fair and equitable distribution.

Q: How do I protect my separate property during a divorce?

A: Maintain clear documentation of your separate property's acquisition before the marriage. Keep separate bank accounts if possible. Consult with an experienced Indiana divorce attorney to understand your rights and options.

Conclusion

Navigating Indiana's marital property laws requires careful consideration of numerous factors. Understanding what constitutes marital versus separate property is fundamental to a fair and equitable divorce settlement. If you are facing divorce in Indiana, seeking legal counsel from a qualified attorney is strongly recommended to protect your rights and interests. They can help you understand the complexities of property division and guide you through the process. Remember, the information provided here is for general educational purposes and is not a substitute for professional legal advice.