When a couple decides to end their marriage, dividing property can be one of the most challenging and emotionally charged parts of the process. In Indiana, understanding how the state defines the marital estate is essential for anyone considering or going through a divorce. Let’s break it down clearly and simply.
What is the Marital Estate?
In Indiana, the marital estate includes all property owned by either spouse at the time a divorce is filed. This is known as the “one-pot” theory, meaning (almost) everything goes into a single pool regardless of when or how it was acquired.
This definition is quite broad and typically includes:
- Property acquired before the marriage
- Property acquired during the marriage
- Gifts or inheritances received by either spouse
- Retirement accounts and pension benefits
- Real estate, vehicles, investments, and personal property
Indiana’s approach is unique because even property one spouse brought into the marriage or inherited individually is generally considered part of the marital estate.
*Note that being part of the estate does not mean that it will be automatically divided 50/50. Keep reading.*
Presumption of Equal Division
Indiana law starts with a presumption that an equal (50/50) division of the marital estate is fair and just. That means that each party gets half of the total value of the estate, not 50% of each individual asset. However, this is just a starting point, not a strict rule.
Can the 50/50 Presumption Be Rebutted?
Yes. Either spouse can argue that an equal split would not be just and reasonable. To determine a fair division, Indiana courts consider several factors, including:
- Each spouse’s contribution to the acquisition of property, whether financial or non-financial (such as homemaking)
- The economic circumstances of each spouse at the time of division
- The conduct of the parties during the marriage (though this is rarely a major factor)
- Each spouse’s earning ability and financial needs
- Whether a spouse acquired property before the marriage or through inheritance or gift
Excluded Property
Although all property is initially included in the marital estate, the court can decide to award certain assets exclusively to one spouse based on fairness. For example, an inheritance might ultimately be set aside to the receiving spouse if equitable to do so.
Final Thoughts
Indiana’s broad definition of the marital estate can surprise many people. It’s crucial to understand that almost all property you own — even what you had before marriage — is on the table for division. However, the law also allows room for fairness and unique personal circumstances to be considered.
Going through a divorce in Indiana can be challenging, but consulting with an experienced family law attorney can make a significant difference. We can help you understand your legal rights and guide you toward achieving the most fair and equitable outcome for your situation.
If you have questions or need guidance, the team at Harshman Ponist Smith & Rayl, LLC is here to help. Contact us today to schedule a consultation and take the next step toward clarity and peace of mind.