Marital property, or “marital estate,” is the term used for assets and properties acquired by a couple during their marriage. This includes income, vehicles, personal property, bank accounts, stocks and other investments, and real estate. Couples may also have obligations, such as student loans and credit card debt, that are also considered part of the marital estate.
What Makes Marital Property Different From Separate Property?
When it comes to marital property, it is important to understand the distinction between separate property and marital property. Separate property includes assets, property, and income that was acquired by one spouse prior to the marriage, or received by one spouse during the marriage by way of inheritance or a gift from a third party.
How Does the Division of Marital Property Work?
In most cases, the division of marital property should be done on a fair and equitable basis. This means that whatever assets and income the couple has acquired during the marriage should be divided between the two parties in a fair way. It is important to note that “fair” does not necessarily mean “equal” – it simply means that the division should be reasonable and should take into account the financial situation of both parties. Depending on the jurisdiction, the court may also consider factors such as the length of the marriage, the contributions of each spouse, the value of each asset, and any other factors deemed relevant to the case.
In some cases, couples may also be able to negotiate their division of marital property outside of court, either directly with each other or with the help of an attorney. However, if a settlement cannot be reached, it may be necessary to take the dispute to court. It is important to note that if a couple is filing for divorce, the division of marital property should be finalized before the divorce is granted.
Conclusion
It is important for couples to understand the distinction between separate and marital property in order to ensure that each spouse receives their fair share of the marital estate. By understanding the process for the division of marital property and being aware of their rights and obligations, couples can protect their interests and work towards a fair resolution.