Indiana Divorce Property Division

• October 24, 2024
• CLLB Law
• Divorce

Learn about Indiana Property Division and Debt Allocation Laws

Indiana divorce law uses equitable property division. However, equitable doesn’t necessarily mean equal. Various considerations go into deciding who gets what and what’s fair for each party during property division.  

While divorce processes are complex, marital assets and debt division make them even more challenging. Unlike in community property states, Indiana’s divorce law uses equitable property division.  Property division is a complicated process as you’ll need to consider what’s fair and ensure you are not at a disadvantage. Without expert guidance, you may lose out on properties you are entitled to or agree to a decision that’s not in your best interests.

So, are you contemplating divorce, in the process, or supporting someone through it? Understanding Indiana’s approach to property division will help you make informed decisions.

Keep reading to learn which properties get divided in an Indiana divorce and how judges decide on a fair distribution of those properties.

Understanding Indiana’s Equitable Property Division Law

Know What “Equitable” Means in Indiana Property Division Law

Indiana’s equitable property division law means that when couples go through a divorce, the court will divide their marital assets and liabilities equitably.  Note that equitable doesn’t mean equal. Instead of a strict 50-50 split, the court considers different factors to determine what is equitable. Some of these factors typically include each spouse’s contribution to the marriage, their earning potential, and other relevant circumstances.

The goal of equitable property distribution is to ensure that you and your partner get a fair share of the marital property. To do this, the court will carefully review factors like your individual circumstances and contribution to the marriage.

What Property Is Distributed During an Indiana Divorce?

Discover the Assets You Are Entitled to During the Property Division 

In most equitable distribution states, only the properties acquired during marriage (marital property) are divided. Any asset you and your partner had separately before getting married, received as gifts or inheritances during the marriage, is not considered.

However, although Indiana divorce law uses equitable property division, there’s a twist. Under the state’s law, a divorce judge divides the properties that fall under any of these categories:

• Any property each person owned before getting married
• Any asset you acquired together during marriage
• Any property you or your spouse acquired during the marriage until the date you separated (the day you filed for divorce or legal separation).

So, based on the state’s law, almost everything you and your partner owned during the marriage is up for division. The only property that stays with you are the assets you acquired individually after filing for divorce or separation. 

How Do Indiana Judges Distribute Property Between Spouses? 

Know How Properties Are Divided 

Indiana divorce property division laws give judges several options to divide a couple’s assets, including:

• Granting each spouse property of equal value
• Requiring the spouse receiving specific assets to pay the other spouse a fair share of the property’s value
• Ordering the couples to sell the properties and divide the proceeds between themselves
• Allocating part of the future benefits post-divorce, like a percentage of pension or 401(k) payouts, by granting one spouse the right to receive a percentage of the other spouse’s payments.

As a couple, you’re required to follow these options based on the unique situation following your property division.

How Is Property Valued in an Indiana Divorce? 

Know Your Asset’s Worth

When financial issues like property division are at stake, you and your spouse must share complete information about your income, expenses, and debts. So, it’s necessary to prepare your financial information before the divorce process starts.

While the value of some assets is easy to determine, you may need a financial expert to help you gauge the worth of other properties.

However, if you and your partner can’t agree on a property’s worth after this, a judge may need to step in. They’ll help you determine the property’s worth based on the evidence you both provide.

Debt Allocation in Equitable Property Division in Indiana 

Learn How Debt Is Divided During Property Division 

The equitable property division laws govern the distribution of debt in a divorce proceeding. So, joint debts that are considered “just and reasonable” are divided as evenly as possible.

For example, let’s assume that you and your spouse took separate loans before getting married and took a car loan after marriage. In that case, you may choose to pay for your personal loans separately. Yet, your car loan may be joint and split evenly between you and your spouse.

When Is an Unequal Division of Property Considered Fair in Indiana? 

Discover When to Refute Equal Property Division 

In Indiana, an unequal division of property is considered fair when you present proof to counter the presumption of an equal division.

The judge generally considers the following factors when determining whether the unequal division is appropriate:

• Each person’s contribution to acquiring the property
• When and how the property was acquired (whether through inheritance or gift)
• Your economic situation, especially if you have custody of the kids and need the family home
• Your conduct during the marriage regarding handling or misuse of property
• Your earnings or ability to earn in relation to the property division.

You have to prove why you think it’s fair to divide the properties unevenly. The judge has the discretion to make a decision, and the appeals court can only overturn the decision if the judge misinterpreted the law. 

Agreeing to Divide Your Property with Your Spouse 

You Can Agree on Property Division Without the Court’s Intervention 

There’s always an option for you and your spouse to agree on how you’ll split up your property when you get divorced.

The court encourages couples to settle their marital issues outside of trial. Doing this gives you and your spouse the opportunity to agree on how you’ll divide your assets.

If you are able to reach a complete marital settlement agreement before filing a divorce, you can opt for an uncontested divorce in Indiana. This occurs when both parties agree on all issues, including property division, child custody, and support. It is also cheaper and quicker than a contested divorce.

Contact Experienced Indiana Divorce Lawyers for Your Divorce And Property Division 

Work with A Firm That Protects Your Rights 

Our divorce lawyers at  Church Langdon Lopp Banet law firm have the experience and expertise to guide you through your case. We will review your situation and provide you with appropriate legal options. Our in-depth knowledge of Indiana property division laws and experience navigating similar cases gives us the insight to help you every step of the way.

So, if you are going through a divorce and need guidance, our lawyers at Church, Langdon, Lopp, Banet law firm will help you decide on the right steps to take. Contact us now at (812) 725-8226 to speak to one of our attorneys.