When couples decide to get divorced, one of the biggest issues they face is how to divide their assets. This can be a very complicated process, especially if the couple has a lot of assets, and that’s why it’s important to have a good understanding of the principle of equitable distribution.
What is the principle of equitable distribution?
The principle of equitable distribution is the legal framework that courts use to divide marital property during a divorce. This principle is based on the idea that each spouse should receive a fair share of the couple’s assets, regardless of who earned or acquired them during the marriage.
For instance, if one spouse owned a house before the marriage, but the couple lived in that house during the marriage and both contributed to its upkeep, then the court may consider that house to be marital property subject to equitable distribution.
On the other hand, if one spouse inherited a house from their parents, and they never lived in that house with their spouse, then the court may consider that house to be non-marital property and not subject to equitable distribution.
Factors that courts consider when dividing assets
One of the most important factors that courts consider when dividing assets is the economic situation of each spouse. This includes things like each spouse’s income, earning potential and financial needs.
For instance, if one spouse earns a significantly higher income than the other, the court may award a larger share of the couple’s assets to the lower-earning spouse. This is because the lower-earning spouse may need those assets more in order to maintain their standard of living after the divorce.
Another important factor that courts consider is whether either spouse contributed to the marriage in a non-financial way. For instance, if one spouse stayed home to raise the couple’s children, then the court may award a larger share of the couple’s assets to that spouse. Courts may also consider any other factors that they deem relevant in making a fair and equitable distribution of the couple’s assets.
In the end, the court’s goal is to divide the couple’s assets in a way that is fair and equitable to both spouses, taking into account all of the relevant factors. This can be a very complicated process, so it’s important to understand everything that is involved before making any decisions.