Most equitable distributions issues are settled by an agreement between you and your spouse and are memorialized in a written contract typically called a property settlement agreement. If you and your spouse cannot reach a property settlement, the judge will divide the martial assets owned and marital debts owed by you and your spouse. This is called making an “equitable distribution” of the property. Your equitable distribution claim must be pending on the date of divorce or your claim for equitable distribution will be barred forever. There are three (3) classifications of property: (1) Marital Property; (2) Separate Property; and, (3) Divisible Property.
Marital Property includes all property currently owned at the date of separation which was acquired either by you, by your spouse or by both of you during the marriage and before the date of separation.
Separate Property typically includes all property owned by either spouse before the marriage and property acquired during the marriage by one spouse through an inheritance or by a gift from a third person. Separate property also includes income from separate property.
Divisible Property is a classification of property addressing situations affecting martial property that occur after the date of separation and before the date of distribution. For example, if marital property increases in value, or decreases in value, after separation and before the date of distribution, the court will take these changes in value into consideration when awarding property to each spouse.
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