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What is 'Equitable Distribution' and What Does it Mean for Your Assets

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What is 'Equitable Distribution' and What Does it Mean for Your Assets

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  1. What is 'Equitable Distribution' and What Does it Mean for Your Assets? If you're going through a divorce, you’ve probably heard the term equitable distribution. But what does it really mean for your money, property, and future? The answer could affect everything from your home to your retirement funds. For personalized help with dividing property during divorce, connect with experienced Family Law attorneys in Fort Wayne who understand Indiana's legal approach to asset division. What is Equitable Distribution? Equitable distribution is the legal process used to divide marital property in a divorce. Unlike “equal” distribution, it doesn’t always mean a 50/50 split. Instead, it means fair distribution based on many factors. Indiana follows the rule of equitable distribution, meaning the court decides what’s fair based on your situation. This can sometimes lead to a 50/50 split, but not always.

  2. What Counts as Marital Property? Marital property includes anything either spouse earned or bought during the marriage. It can include: ● The family home ● Cars and personal items ● Joint bank accounts ● Retirement accounts and pensions ● Investments ● Business interests ● Debts Even if something is in one person’s name, it may still count as marital property if it was acquired during the marriage. Separate Property: What Stays With You Not all property is divided. Some things are considered separate property and usually stay with the original owner. This might include: ● Gifts or inheritances given to one spouse ● Property owned before the marriage ● Some legal settlements (like personal injury awards) But there’s a catch. If separate property is mixed with joint assets, it can become marital. For example, putting inherited money into a shared bank account might make it subject to division. How Courts Decide What’s Fair Equitable doesn’t mean equal. Courts consider many factors when dividing assets: ● How long the marriage lasted

  3. ● Each spouse’s income and earning potential ● Contributions to the household, including child care or unpaid work ● Whether one spouse gave up a career to support the other ● The age and health of both parties ● Custody of children ● Financial misconduct or hidden assets The judge’s goal is to split things in a way that’s fair to both sides, not just equal on paper. Can You Decide This Without a Judge? Yes. Many couples work out their own property division with the help of attorneys or mediators. This allows more control and often leads to better outcomes. If both parties agree on who gets what, the court will usually approve it. But it must still meet legal standards for fairness. Protecting Yourself During the Process Here are a few steps to help you protect your assets: 1. Know what you own Make a full list of all assets and debts. 2. Don’t hide anything Courts don’t look kindly on secret accounts or undisclosed property. 3. Keep financial records Gather documents showing when and how property was acquired. 4. Work with a trusted attorney They’ll help you understand what’s fair and fight for your interests. Don’t Guess What’s “Fair” - Get Legal Advice Dividing property during divorce isn’t just about splitting things in half. It’s about protecting your financial future. The law allows room for judgment, and that’s why having a skilled attorney matters.

  4. If you're unsure how equitable distribution will affect you, speak with trusted Family Law attorneys in Fort Wayne who can help you make smart, informed choices.

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