Property Division in Indiana Divorce: Understanding the Presumption of Equal Division

Indiana law presumes that marital property should be divided equally in a divorce, but the court may deviate from that presumption under certain circumstances. Here is what you need to know.

One of the most significant issues in any divorce is how the couple’s property will be divided. Indiana follows an equitable distribution approach to property division, but with an important starting point: under Indiana law, there is a rebuttable presumption that an equal division of marital property is just and reasonable. This means the court begins with the assumption that each spouse should receive fifty percent of the marital estate, but either spouse may present evidence that an unequal division would be more appropriate under the circumstances.

Indiana’s definition of marital property includes virtually all property owned by either spouse as of the date the petition for dissolution is filed, regardless of when or how the property was acquired. This includes assets acquired before the marriage, assets received by gift or inheritance, and assets held in only one spouse’s name. Indiana does not automatically exclude premarital or inherited property from the marital pot the way some other states do, although the court may consider that property was an inheritance given to one spouse when deciding whether to deviate from an equal split or deciding who to give specific property to.

When deciding whether to deviate from the presumption of equal division, the court considers several factors. Such factors include the contribution of each spouse to the acquisition of property, the extent to which the property was acquired before the marriage or through inheritance or gift, the economic circumstances of each spouse at the time of the divorce, the conduct of the parties during the marriage as it relates to the disposition or dissipation of assets, and the earnings or earning ability of each spouse. For example, if one spouse spent much of the marital savings or recklessly accumulated debt, the court may adjust the division to account for that conduct.

It is important to understand that the marital estate includes not only assets but also debts. Mortgages, credit card balances, student loans, car loans, and other debts accumulated before and during the marriage are generally part of the marital estate and must be allocated between the spouses. The court considers the same factors when dividing debts as it does when dividing assets.

Property division in a divorce can become particularly complex when the marital estate includes business interests, retirement accounts, pensions, real estate holdings, or other assets that are difficult to value. In these cases, it may be necessary to obtain professional appraisals or financial analyses to determine the fair market value of certain assets before the court can make an informed division.

The family law attorneys at McNeelyLaw can help you identify and value the assets and debts in your marital estate and advocate for a fair division. Contact us today to schedule a consultation.

This McNeelyLaw LLP publication should not be construed as legal advice or legal opinion of any specific facts or circumstances. The contents are intended for general informational purposes only, and you are urged to consult your own lawyer on any specific legal questions you may have concerning your situation.