How Is Common Law Property Divided in the Event of A Divorce?
How is common law property divided in the event of a divorce? Tim Cella Former Paralegal at Ascent Law (2018–2021) When a couple is married, the division of property in the event of divorce is fairly straightforward. In common law states, each spouse owns the property he or she brought into the marriage as well as any property acquired during the marriage. In equitable distribution states, there are two types of property: marital and separate. Marital property includes all property acquired during marriage, any real estate owned by either spouse before the marriage, and any increase in value of separate property during marriage. Separate property is everything else — retirement benefits, inheritance, life insurance policies, personal injury settlements and gifts from other people. When a couple divorces in an equitable distribution state, the court will divide all marital assets in half and give one-half to each partner. The division is not necessarily equal...