The State of Indiana is considered an equitable distribution state. That means that the marital estate is divided in accordance with what is fair, not necessarily evenly. That being said, there is a presumption that the marital estate should be divided evenly in most cases. The court requires evidence to make an unequal division of the marital estate. In the case we are about to review, Dean v. Dean, the marital estate was not divided evenly.
Background of the case
In this case, Husband and Wife were married in 2007. They had two children and then separated in 2016. As part of their divorce, the trial court had to decide how to divide the marital estate. This included their marital home, which had significant equity, alongside other assets and debts.
The trial court decided that a 65/35 split (with Wife receiving the larger share) was fair under the circumstances. Husband appealed the decision, arguing that the trial court mishandled the equity in the home and abused its discretion by straying too far from an equal distribution.
Understanding the court’s ruling
In this case, the Indiana Court of Appeals upheld the trial court’s decision. The appeals court explained that while Indiana Code § 31-15-7-5 creates a presumption of equal division, that presumption can be rebutted when evidence establishes that an equal split would be “unjust.” Judges must consider statutory factors, such as:
- Each spouse’s contributions to the acquisition of property, whether financial or homemaking
- The economic circumstances of each spouse at the time of division
- Conduct by either spouse that resulted in the dissipation (or waste) of marital assets
- Earnings or earning ability of both parties
In the Dean case, the trial court found that unequal division was warranted and supported by the evidence. The appellate court noted that trial judges are usually in the best position to weigh testimony and evaluate financial records. Therefore, it would not substitute its judgment without there being some kind of clear error.
Why this case is important
The Dean decision is important for several clear reasons. These include:
- Equal is the starting point, not the finish line – Indiana courts will begin with the assumption that property should be split 50/50. That presumption can be overcome, however, with the right evidence.
- Judges have wide discretion – Absent evidence that the law was misapplied, judges have wide discretion to make a decision. Appellate courts only rarely overturn a trial judge’s property division if it is supported by evidence.
- Evidence is crucial – If you believe that an unequal division is justified, you must present detailed evidence of contributions, debts, earnings, and other relevant factors.
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Chris Arrington represents the interests of Indiana residents during their divorce. Call our office today to schedule an appointment, and we can begin discussing your next steps right away.