In the majority of states, the marital estate is created from the day you marry until the day one spouse dies or the couple divorces. That is not how it works in Indiana, however. All property, even property that was brought into the marriage before the marriage took place, is considered part of the marital estate and subject to equitable distribution. Equitable distribution means that the marital estate is divided in accordance with what is equitable or fair—not necessarily a 50/50 split. In this article, the Danville, IN family law attorney, Chris Arrington, will discuss what property is subject to equitable distribution in the State of Indiana and how that process works.
What constitutes marital property in Indiana?
All property that you own becomes property of the marital estate once you marry unless you have a prenuptial or postnuptial agreement that identifies the asset as your separate property. Examples include:
- Income from wages
- Real estate
- Retirement accounts
- Investment portfolios
- Businesses and business profits
What property is exempt from division in Indiana?
In most states, the marital estate begins the day you marry and continues to accrue assets until you file for a divorce. Any property brought into the marriage is considered that spouse’s separate property. That’s not how it works in Indiana. In Indiana, the only property that is exempt from equitable distribution is property included in a prenuptial or postnuptial agreement. In other words, you must establish the property as separate, or else it will be considered a part of the marital estate.
Prenuptial agreements are becoming more common across the United States. While they still have a stigma attached to them, they remain one of the only ways to protect your assets from divorce.
The value of prenups and postnups in protecting your property
If you started a business before or after your marriage, that business is property of the marital estate in Indiana. That means that both spouses own the business, not just the one whose name is on the title. In Indiana, judges will distribute property in accordance with what is fair to both parties. This means that if one party earns significantly less than the other, they may have more of the marital estate distributed to them.
The only way to protect a business venture from equitable distribution is with a prenuptial or postnuptial agreement. Such agreements are contracts you sign with your spouse. The agreement can stipulate that specific property belongs to you regardless of any other factor. The courts broadly enforce the provisions of these agreements so long as the terms are not unconscionable or agreed to under duress.
Talk to a Danville, IN, Family Law Attorney Today
Chris Arrington can help Indiana couples protect their assets from equitable distribution. If you would like more information on how we can help, please don’t hesitate to call us today. We can prevent your business or a specific asset from becoming part of the marital estate and subject to equitable distribution.