Key Factors in Property Division:
- Professional Licenses or Degrees:
- Licenses or degrees are not classified as marital property. However, courts can use equity powers to award reimbursement for financial contributions made by one spouse toward the other’s professional education. Only documented expenses are eligible for reimbursement.
- Pension Benefits:
- Pension benefits accrued during the marriage are marital property, including 401(k) plans and profit-sharing plans, and are subject to division regardless of the non-employee spouse’s contributions.
- Personal Injury Proceeds:
- Proceeds from personal injury claims are marital property if the cause of action occurred between the marriage date and final separation.
- Marital Debts:
- Debts are classified as marital or separate. Generally, debts incurred during the marriage are marital debts. Courts consider:
- Purpose of the debt
- Who incurred it
- Who benefitted from it
- Who is better positioned to repay it
- Debts are classified as marital or separate. Generally, debts incurred during the marriage are marital debts. Courts consider:
- Goodwill:
- The reputation and client base of a business or professional practice are marital property if they can be valued monetarily.
- Future Interests:
- Potential future property interests are not subject to division.
Comparison of Property Division and Alimony:
- Property division reflects past contributions, while alimony focuses on future needs.
- Tax Consequences:
- Equitable distribution payments and property transfers are not taxed at the time of transfer. However, taxes apply when the property is sold.
Hiring an experienced divorce attorney ensures that these complex considerations are managed effectively.