Property division determines how you and your spouse will split assets and debts accumulated during marriage. The rules depend on your state: 9 states follow "community property" rules (50/50 split), while 41 states use "equitable distribution" (fair, but not necessarily equal). Understanding which system applies to you is crucial for negotiating a fair settlement.
Last updated: February 2026 • Reviewed by Divorce.law Legal Team
All property acquired during marriage is owned equally by both spouses and divided 50/50.
Property is divided "fairly" based on various factors—not necessarily 50/50.
All states except the 9 community property states above, plus Alaska (opt-in community property).
Regardless of which state you live in, there's a critical distinction between marital property (subject to division) and separate property (generally kept by original owner).
Separate property can become marital property if "commingled." For example, depositing an inheritance into a joint account or using it to pay marital debts may convert it to marital property.
Options include: one spouse buys out the other, sell and split proceeds, or continue co-ownership temporarily (common when children involved). The spouse who keeps the home usually refinances to remove the other from the mortgage.
Only the portion earned during marriage is marital property. Division typically requires a Qualified Domestic Relations Order (QDRO) to avoid tax penalties. Victoria can help you understand the QDRO process.
If a business was started or grew during marriage, its value may be marital property. Options include buyout, co-ownership, or offsetting with other assets. Business valuation often requires expert appraisal.
Debts incurred during marriage are typically divided along with assets. Credit cards, mortgages, car loans, and student loans (in some states) may all be divided. Joint debts may still be pursued by creditors from either spouse regardless of divorce decree.
Create a comprehensive list of all assets and debts with values and documentation.
For valuable items (home, business, jewelry), professional appraisals provide objective values.
Some assets have tax consequences when sold. A $100k 401k isn't worth the same as $100k cash.
The house may feel important now, but can you afford the mortgage, taxes, and maintenance alone?
Courts take a dim view of hidden assets. Discovery can uncover them, leading to penalties.
Trade-offs are normal. You might give up retirement funds to keep the house, or vice versa.
Property division rules vary by state. Some "equitable distribution" states lean toward 50/50, while others give judges wide discretion. Understanding your specific state's approach is essential.
View state-specific property division rulesVictoria AI helps you inventory assets, categorize property as marital or separate, and understand your state's division rules.