Are Family Assets Always Split 50/50 in a Divorce?

Is the division of assets always equal in a divorce?

When a married couple — or one member of the relationship — decides they are ready to get a divorce, one of the first questions is often what will happen with their assets and property once the marriage is dissolved. And it’s a very fair question!

Depending on the circumstances of the marriage, a couple may acquire significant assets in the time they’re together, like houses, cars, or a business. Or, in some cases, one spouse may have entered the marriage with substantial assets that were shared with the other spouse by jointly purchasing a property or depositing the funds into joint accounts.

The state of Oregon is an equitable distribution state, which means that the court will divide property and assets equitably (or fairly), and under some circumstances, a 50/50 split may not always be the most equitable solution.

How is the division of property determined in a divorce?

Some divorce cases we see here at our firm are pretty straightforward, and determining how to fairly divide property between spouses is quick and easy, but some cases involve reasonable disagreements over how to divide things up. It can be difficult to determine who keeps the house, what things are worth, or whether someone should be able to keep something that they have shared with their spouse.

Whether your attorney is working on a settlement on your behalf, or the court is stepping in, the process to determine how assets are divided usually follows the same steps after a few factors have been determined: when the property was acquired, how it was acquired, what it is worth, and how it fits into the overall list of assets that need to be divided. From there, if it is determined that an asset was purchased, obtained, or acquired during the marriage, a presumption of equal contribution applies to that piece of property.

Under Oregon law, assets acquired in a marriage are presumed to have been acquired with equal contribution of both spouses. In simpler terms, until proven otherwise, attorneys and the court will assume that both spouses contributed equally to any property, like the purchase of a house or car or home, investments, retirement contributions, or starting a business. This contribution can be monetary or not, as well, like if one spouse was largely responsible for raising children while the other was the primary breadwinner.

The key to a successful rebuttal of this law is to prove that the contribution was not, in fact, equal. For example, if spouses maintain totally separate finances during marriage and do not commingle their financial lives at all.

The analysis for inheritances and gifts acquired during the marriage is different. If a party can prove they have separately held an inheritance or a gift, that item will not be subject to the presumption of equal contribution and then be distributed only in the next step of the analysis.

The court’s final analysis is to decide what is “just and proper” in the circumstances of each individual case. This is a complicated analysis and looks at a myriad of social and financial objectives.

What assets are considered in the division of property?

In order to determine what is just and proper in a dissolution of marriage, all assets and property must be considered, but there are also some nuances in the decision that are important to keep in mind.

Physical assets that were purchased during the marriage, like houses or other valuable belongings, are perhaps the biggest consideration in property division, as these are often the highest portion of total assets. Additionally, cash assets, vehicles, RSUs, retirement accounts, and other intangible assets are considered.

Some less obvious assets that may be considered by the court when dividing property include gifts or inheritances, or beneficial interests in trusts, but these are often treated differently than the rest of the assets acquired in the marriage.

How are debts divided in a divorce?

In the same way that the court aims to determine the most just and proper distribution of assets, it will seek the same level of equality in the division of liabilities, or debts. Things like student loan debt, mortgages, car loans, or credit card debt will need to be considered in the analysis, as that will determine who is responsible for those debts upon dissolution, or if they will need to be split 50/50.

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Division of property can be complicated, but a family law attorney can help

If you’re feeling a bit daunted by everything that goes into a fair division of property in a divorce, you’re certainly not alone. It can be a complicated and difficult process on top of the emotional tax a divorce already takes on both parties. But, an experienced family law attorney can help you navigate this process for the best possible outcome.

To ensure you get the fairest and most accurate division of assets in your divorce, contact the team at DBMA Family Law Group. Our attorneys have the compassion and expertise required to help you get what you deserve from your divorce.