REMEMBER THIS

• In most states, when a husband and wife divorce, they are entitled to keep their own separate or nonmarital property. Separate or nonmarital property includes property they each had before marriage, and property received by inheritance during the marriage, as long as the property is kept separate—for example in an account in the name of the spouse who received the property.


• Unless a premarital agreement provides otherwise, property acquired during the marriage—including wages and pensions—is considered marital or community property. A court can divide marital or community property as the court thinks is equitable, considering a variety of factors (although in some community property states such as California, community property automatically will be divided fifty-fifty).


• In addition to dividing property, most couples also have debts to divide. The court, or the parties by agreement, will divide whatever property the couple has and then allocate the responsibility of each party to pay off particular debts.


• Before deciding to go to trial and have a judge decide how to divide property, spouses should undertake a cost-benefit analysis to make sure that the cost of going to trial (including the cost of attorneys’ fees and experts) will not exceed the potential benefits from a trial.