Oregon Marital Property Laws

In equitable distribution states like Oregon, courts presume that both spouses contribute equally to the marriage and marital assets. During a divorce, courts divide all property acquired during a marriage between the spouses. In Oregon, laws base the division of property on the parties' contributions to the marriage.

A few states, such as California, are community property states. In these states, spouses split marital property 50/50, regardless of who acquired the assets. Every state has rules about dividing property during a divorce or legal separation.

Couples can divide their property with a prenuptial agreement or other written agreement. Oregon courts will make the division for them if they do not have an arrangement before a divorce.

Note: State laws are subject to change through the passage of new legislation, court rulings (including federal decisions), ballot initiatives, and other means. FindLaw strives to provide the most current information available. You should consult an attorney or conduct your own legal research to verify the state law(s) before making any legal decisions.

Marital Property vs. Separate Property

Oregon divorce law presumes equal contribution in marriage. In other words, all property acquired by either spouse becomes marital property. Marital property includes financial contributions by one spouse. It also includes non-monetary contributions like homemaking and childcare.

Marital property can include:

• Wages or other income earned after marriage

• Joint bank accounts and investment accounts

• Retirement accounts and pension plans

• High-value purchases such as real estate, regardless of the name on the title

• Marital debts and liabilities

• Appreciation or profits from marital possessions

Separate property is any property acquired before the marriage and any property acquired during the marriage through gift or inheritance, profits earned on separate property, and property excluded by a prenuptial agreement.

In 2011, Oregon laws changed to remove assets "acquired by gift [or inheritance] to one party" that are "separate from the marital estate." Before 2011, courts considered an inheritance a part of the marital estate like any other property. In the case that prompted the change, In re Marriage of Olesberg (Oregon Court of Appeals, 2006), the court granted a wife a share of the husband's inheritance despite evidence that she had not been an intended recipient. The court reasoned that the decedent did not specifically exclude the wife as an heir.

Today, there is a rebuttable presumption that an inheritance belongs to the heir as their separate property (Oregon Revised Statutes § 107.105(f)(D)(ii)).

Oregon Marital Property Law

If a couple thinks ahead and protects their separate property with a prenuptial or postnuptial agreement, the court will incorporate it into the divorce decree. If not, a court considers all relevant factors in dividing property equitably, including:

• The current and future earning capacity of each spouse

• The financial contributions of each spouse

• The non-monetary contributions of each spouse if one spouse did not work

• The nature of the property involved and the difficulty in selling or dividing the property

• Each spouse's involvement in the acquisition of an item

• Spousal support or other income from the property

Judges have the discretion to craft a fair divorce settlement for all parties. For instance, spousal support can offset a larger award of property to one spouse. The spouse with primary child custody may receive the family home in the best interest of the child rather than as part of the property settlement.

Like all other property, debt is subject to equitable division during the divorce process. But if one spouse shows the other has dissipated the marital estate, judges may consider that during the property distribution.

Get Legal Advice From an Oregon Family Law Attorney

Divorce and marital property matters have many pitfalls. FindLaw's section on Divorce and Property can give you some answers. Get additional legal advice from an Oregon divorce attorney before going through the divorce process.