{"id":351754,"date":"2018-11-16T18:16:56","date_gmt":"2018-11-16T23:16:56","guid":{"rendered":"https:\/\/content.findlaw-admin.com\/ability-law\/family\/divorce\/equitable-distribution.html"},"modified":"2023-05-28T16:32:59","modified_gmt":"2023-05-28T21:32:59","slug":"equitable-distribution","status":"publish","type":"page","link":"https:\/\/www.findlaw.com\/family\/divorce\/equitable-distribution.html","title":{"rendered":"What is Equitable Distribution?"},"content":{"rendered":"\n
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What Is Equitable Distribution?<\/h1>\n
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\n By Jade Chounlamountry, Esq.<\/a> | Legally reviewed by Melissa Bender, Esq.<\/a>\n | Last updated\n
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This article has been written and reviewed for legal accuracy, clarity, and style by FindLaw\u2019s team of legal writers and attorneys<\/a> and in accordance with our editorial standards<\/a>.<\/em><\/p>\n\n <\/div>\n <\/details>\n\n

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The last updated date refers to the last time this article was reviewed by FindLaw or one of our contributing authors<\/a>. We make every effort to keep our articles updated. For information regarding a specific legal issue affecting you, please contact an attorney in your area<\/a>.<\/em><\/p>\n\n <\/div>\n <\/details>\n<\/section>\n

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Equitable distribution is one of two methods family courts use to divide property.  In applying equitable distribution to property division, courts seek what is fair for both parties.  By contrast, in community property states, courts split marital property in two equal parts.<\/p>\n\n <\/div>\n\n

Family courts divide property in one of two ways. One method is equitable distribution<\/a>. The other is community property<\/a>. Most states divide marital property according to what’s equitable or "fair" for both parties during a divorce. <\/p>\r\n

This article addresses how courts divide assets between a couple during their divorce case.<\/p>\r\n

Community Property vs. Equitable Distribution: The Basics<\/h2>\r\n

Community property is all property acquired from the date of marriage to the date of separation. There are nine community property states, including California, Arizona, and Texas. Community property is subject to a roughly 50\/50 split in a divorce. The property is divided equally regardless of other factors of the separation. The courts do not care which person contributed more to the marriage, separate property, etc.<\/p>\r\n

Separate property<\/a> is owned by one spouse or in one spouse’s name, typically before the marriage. Separate property is non-marital property and not divided like community property. One way to determine separate property is through a prenuptial agreement<\/a> or postnuptial agreement<\/a>. But state laws determine limited property obtained during the marriage as separate property. Some examples include personal injury awards, gifts, or inheritances. Marital property is any property acquired during the marriage. This includes any property acquired by either spouse. In community property states, marital property is the same as community property. In fair distribution states, the courts determine what marital property is.<\/p>\r\n

Courts take a much more delicate approach to property division in states with equitable distribution laws. These states try to consider what would be the fairest for each spouse. This includes consideration of separate property as well as marital property and the needs and means of each spouse. Consider if one spouse gave up their career to stay home and raise children. They now have a difficult time earning a living after the divorce. In this instance, the court may award that party a larger part of the marital property. If one spouse was abusive or otherwise at fault for the divorce (even in a "no-fault" divorce<\/a>), the court order may award them a smaller portion of the assets.<\/p>\r\n

Determining What’s Equitable: Factors Considered<\/h2>\r\n

In all states, the divorcing couple can reach an agreement on their own (subject to court approval) before the courts intervene. This may occur in a collaborative<\/a> environment or through the parties’ attorneys. Suppose the parties cannot agree on the division of marital property. In that case, the courts will use their discretion (within the parameters of state marital property law<\/a>) to reach a resolution. The courts generally consider the following factors when dividing assets under fair distribution:<\/p>\r\n