Those going through a divorce are wise to understand how property division works in their state. Under Indiana law, marital property generally includes all assets acquired by either spouse during the marriage, as well as those they own when they enter the marriage. Here are key examples of marital assets:
- Income earned by either spouse prior to filing the divorce,
- Homes and real estate, and
- Retirement accounts.
What is exempt from division during divorce in Indiana?
In most states, separate property refers to anything owned by an individual prior to marriage or received as a gift or inheritance during the marriage. This is not true in Indiana. In Indiana, the only property that is exempt from division during divorce is that which is outlined in a premarital agreement.
Premarital agreements are becoming more common in recent generations. Those who are interested in protecting property are wise to consider these legal documents.
What should those with high net worth cases know before moving forward with the division of property?
High net worth divorces often involve complex asset structures, including business interests, investments, and real estate in multiple jurisdictions. It is wise to maintain clear records of asset acquisition and recent valuations, if available, to help guide negotiations during divorce. Working with experienced legal and financial professionals is essential in high net worth divorces to ensure a fair and accurate division of assets.
Indiana uses a unique system when the courts divide property during divorce. Those going through a divorce can benefit from a basic understanding of how the law applies to their situation to help mitigate the risk of surprises once they finalize the divorce.