During your marriage, you and your spouse accumulated property (assets) and liabilities (debts). “Equitable division” of these assets and liabilities that were acquired during the marriage is a legal determination of who will take which assets and who will take which debts. Equitable division is not concerned with an “equal” division of the assets and liabilities, but is concerned with a “fair” division of the assets and liabilities. Any property that you acquire through gift, inheritance, or bequest remains separate property that it is not subject to equitable division, unless there is an appreciation in value during the marriage due to a spouse’s effort. Insurance policies, joint savings accounts, closely-held corporations, stock options, gifts between spouses, annuity benefits, 401(k)s, 403(b)s, etc. can be marital property subject to equitable division. If one party owned the property or had incurred the debt individually prior to the marriage, it is not subject to equitable division.

When real property is involved, where one party’s name is on the deed prior to the marriage, but marital funds have reduced the mortgage debt, the court may distribute the proceeds from the sale of the asset to the parties collectively.