Property Distribution in Divorce Proceedings

     Indiana follows the "one-pot theory" with respect to marital property. Therefore, any assets and debts brought into the marriage or acquired during the marriage are subject to division by the court. Assets include items such as personal property, real estate, bank accounts, inheritances, retirement accounts, business interests and intangible property. Debts include items such as credit cards, loans, mortgages, student loans and promissory notes.

     It is presumed that a 50/50 distribution of the marital assets and debts is just and reasonable in all divorce actions. However, a party may challenge this presumed distribution by offering evidence to the court that a 50/50 distribution would not be just and reasonable in their particular case. Relevant factors that could justify a deviation are set forth in Indiana Code Sec.31-15-7-5 and include the following:

"(1) The contribution of each spouse to the acquisition of the property, regardless of whether the contribution was income producing.

(2) The extent to which the property was acquired by each spouse:

(A) before the marriage; or

(B) through inheritance or gift.

(3) The economic circumstances of each spouse at the time the disposition of the property is to become effective, including the desirability of awarding the family residence or the right to dwell in the family residence for such periods as the court considers just to the spouse having custody of any children.

(4) The conduct of the parties during the marriage as related to the disposition or dissipation of their property.

(5) The earnings or earning ability of the parties as related to:

(A) a final division of property; and

(B) a final determination of the property rights of the parties."

     If you have questions or concerns about the impact a divorce could have on your finances or property rights, contact Eric Benner or Alicia Adcock for more information.