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Equitable Distribution: Where it Applies and What it Means

By Divorce.com staff
Updated Aug 04, 2022

Equitable Distribution

Equitable Distribution: Where It Applies and What It Means

Equitable distribution is used in many states when determining a fair allocation of marital assets between both parties. Some parties may choose to try and divide marital assets on their own or with mediation.

If that proves unsuccessful, it will be up to the courts to decide how to split marital assets and property through equitable distribution. Learn more about equitable distribution and how it may affect or impact your divorce.

Equitable Distribution

What Is Equitable Distribution?

In most states, the division of marital assets is typically based on what is known as “equitable distribution.” Equitable distribution is essentially the division of property between spouses according to factors that the state courts deem relevant. It is different from community property, where spouses get an equal distribution of property.

What is equitable is not necessarily an equal division of assets. Depending on the circumstances, a list of factors will typically be used to determine what each party in a divorce receives. Characteristics can include the length of the marriage, whether minor children are involved, the employment status of each spouse, and what each party brought into the marriage.

Before we dive in, it’s important to note that the specific laws governing equitable distribution vary by state. We’ll give a general overview below, but double-check your state’s guidelines for more information.

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What Factors Influence Equitable Distribution?

Below is a common list of elements used in determining the division of assets.

  • Age and health
  • Each party’s contribution and other’s expenses
  • Education
  • Employability
  • Financial needs
  • Future medical and living expenses
  • Income and spending
  • Standard of living during the marriage
  • Tax consequences

Age and Health

Each spouse's age and health will influence the equitable distribution process. If a spouse is unable to work due to health issues or is incapable of work due to age, they may be rewarded a greater amount of marital assets.

Each Party’s Contribution to the Other’s Expenses

Contributions or efforts of either party in a marriage can impact the value of marital assets. Contributions or efforts can include labor, support, or money. It can also have help made by either spouse to support the increase of the other spouse’s earning potential.

Education

Spousal education level can be a common factor when determining the division of marital assets. For example, one spouse may have more education than the other, and therefore it would possibly result in that spouse receiving fewer assets in the divorce since they could easily earn more following the split.

Employability

The employment status of each spouse and their respective careers can also be a factor when determining the distribution of assets between both parties. It is often a debate on the value in which each spouse’s career contributes to the marriage.

The court will normally consider earning potential, job skills, and the time it’ll take for either spouse to get training or education to become employed. Benefits from one spouse’s career can also be subject to distribution, such as IRAs, retirement accounts, stocks, etc.

Financial Needs

The financial needs of each spouse, including debt, student loans, and general financial assistance needed following a divorce, are also commonly taken into account. Spousal support is often an initial step after filing toward a spouse becoming financially self-sufficient. After the finalization of a divorce, alimony is often a common form of financial support from one spouse.

Future Medical and Living Expenses

Alimony may be distributed to help with both future medical and living expenses. Many factors may determine alimony, such as the length of the marriage, dependents, or ability to pay. It is important to note that money from alimony is considered taxable.

Income and Spending

The sources of income available to each party are also a component when it comes to equitable distribution. The court will look at passive and immediate incomes such as investments, capital gains, career earnings, and rental properties. Both spending and saving habits are also taken into consideration.

Standard of Living During Marriage

The standard of living is determined by looking at the lifestyle of both parties throughout the marriage. Both spouses’ contributions to the marriage, including housework, childcare, and assistance with education, help to determine the division of assets. A spouse’s behavior is relevant if it has impacted the other spouse’s finances.

Tax Consequences

Income tax liability incurred during the marriage is generally considered marital debt. Courts will most likely distribute tax liabilities between both parties. It is important to remember that a tax liability may be associated with assets allocated to each spouse. This tax liability can impact the value of assets awarded through equitable distribution.

What Property Is Exempt from Equitable Distribution?

Property is often divided into two categories: separate or marital.

Separate property is the property that belongs to one spouse. Examples include assets acquired or inherited before the marriage or assets acquired during the marriage through a gift or inheritance. Some states allow the separate property to be excluded throughout equitable distribution unless it was put in the name of both parties.

Marital property is property acquired during the marriage, such as lottery winnings, real estate, investments, vehicles, life insurance policies, etc. This can also include separate property that has increased in value due to the efforts of one or both spouses.

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FAQs of Equitable Distribution

What Is Distribution by Mutual Agreement?

Distribution by mutual agreement implies that both parties agree to the divorce and the terms set forth. This includes the agreement on the division of marital property; debts acquired, child custody and support, and alimony.

The benefits of a mutual agreement divorce include a shorter and more straightforward process while often being much more civilized. This is also known as an uncontested divorce.

Does Marital Misconduct Affect Equitable Distribution?

Forty states consider marital misconduct throughout the process of equitable distribution. Twenty-eight states consider marital misconduct when determining spousal support or alimony.

Infidelity, addiction, financial misconduct, and criminal misconduct can all be grounds for marital misconduct.

Does Equitable Distribution Apply to All Property?

Property is divided into two categories: marital and separate. Equitable distribution applies to the allocation of marital properties. There are some exceptions to this, such as separate property that has increased in value due to the efforts of one or both spouses or unless they choose to share separate property.

Which States Have Equitable Distribution?

The majority of states utilize equitable distribution. This means the court considers each party's assets their own unless the couple has decided to share or divide them.

All states utilize equitable distribution in case of a divorce except:

  • Arizona
  • California
  • Idaho
  • Louisiana
  • Nevada
  • New Mexico
  • Texas
  • Washington
  • Wisconsin
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Final Thoughts

Each divorce is looked at on a case-by-case basis, and it is important to consult a lawyer for the most accurate and up-to-date information.

It should be noted that couples can have a prenuptial or postnuptial agreement with a division of assets. In that event, couples would normally be ground to what they have agreed to. These contracts between spouses provide for the division of assets in advance.

This article is considered a general overview of equitable distribution. It is important to check your individual state’s requirements for the most up-to-date information. Divorce.com offers services so you can save time and alleviate stress.

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Contents:

logo
Basic Do it Yourself Divorce
The most affordable way to get it done right.
Learn more
From $299 + state filing fees
logo
Standard We File For You
Human processing experts to help with your state’s incredibly confusing state filing process.
Learn more
From $599 + state filing fees
logo
Attorney Assistance
Affordable, flat rate legal advice from an independent attorney licensed in your state, to make sure you do everything right.
Learn more
From $899 + state filing fees
logo
Traditional Divorce
Complete end-to-end help from an independent attorney, licensed in your state, with negotiated rates.
Learn more
From $2750 + state filing fees

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uncontested divorce

What To Expect at an Uncontested Divorce Hearing

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mediation, complicated divorce

When Is Divorce Mediation Not Recommended?

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mediation, divorce alternative

7 Things To Do To Prepare for Divorce Mediation

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online divorce

Step-by-Step Guide: How To File for Divorce Online

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divorce papers, divorce without a lawyer

How To Respond to Divorce Papers Without an Attorney

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fast divorce, uncontested divorce

How Long Does an Uncontested Divorce Take?

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divorce process, expensive divorce

How Much Does It Cost To Get a Divorce? Complete Breakdown

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divorce process

How Long Does a Divorce Take?

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divorce process, divorce papers

How To Start the Divorce Process: Step-by-Step

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mediation

What Is Mediation in Divorce and When Should I Use It?

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divorce statistics, divorce rate

48 Divorce Statistics in the U.S. Including Divorce Rate, Race, & Marriage Length

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divorce process, ted

10 TED Talks That Anyone Considering Divorce Should Watch

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Making the Decision, Infidelity

When to Walk Away After Infidelity: 7 Signs It Might Be Time To Leave

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selling property, selling before divorce

Selling Your House Before a Divorce: A Surprisingly Good Idea

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uncontested divorce

What Is an Uncontested Divorce? Everything You Need To Know

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divorce checklist

Divorce Checklist for 2023

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Dating After Divorce

10 Tips for Dating After Divorce

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divorce process, name change

A Guide to Name Change After a Divorce

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divorce process, remarry

Can I Get Married Right After Getting Divorced?

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divorce trauma

The Psychological Trauma of Divorce

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divorce litigation

When Is Divorce Litigation Necessary?

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marriage abandonment

What You Need To Know About Marital Abandonment

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miserable husband syndrome

Miserable Husband Syndrome Explained & Tips To Cope

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toxic relationship

12 Tips on Leaving a Toxic Relationship

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leave a marriage

5 Tips on How To Leave a Marriage Peacefully

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walkaway wife syndrome

5 Signs of Walkaway Wife Syndrome

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divorce process, divorce in california

6 Steps in the California Divorce Process

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divorce process, divorce in Texas

The 6 Steps of the Divorce Process in Texas

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signs od divorce

22 Experts Give Warning Signs Of Divorce You Need To Pay Attention To

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divorce costs, divorce methods

How Much Does a Divorce Cost in California?

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cheating, emotional affair

Emotional Affairs and Texting

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divorce in california, divorce terms

How Long Does it Take to Get a Divorce in California?

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Divorce Recovery, Life After Divorce

10 Tips on How to Reinvent Yourself After Divorce

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sexless marriage

When to Walk Away From a Sexless Marriage

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divorce reasons, top divorce factors

Causes Of Divorce: 13 Of The Most Common Reasons

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divorce process, divorce in california

All of the California Divorce Papers That You Need to Get a Divorce

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divorce costs, divorce in new york

How Much Does a Divorce Cost in New York?

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low-cost divorce, uncontested divorce

The Cheapest Way to Get Divorced

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collaborative divorce, uncontested divorce, types of divorce

The Different Types of Divorce

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Separation, divorce process, divorce in new york

Legal Separation vs Divorce in New York

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divorce statistics, divorce guide, social media

The Complete Guide to Divorce & Social Media

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Life After Divorce, moving out

Moving Out of State Before, During, or After Divorce

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Children and Divorce, child custody

5 Reasons a Judge Will Change Custody

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Children and Divorce, child custody

What Does Sole Custody Mean?

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Child Support, Children and Divorce, child custody

How Does Child Support Work if the Father Has No Job?

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Child Support, alimony

If the Wife Files for Divorce, Can She Get Alimony?

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child custody, parent rights

Parent Rights: Custodial Parent vs. Non-Custodial Parent

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divorce statistics, divorce rate

10 Professions With The Highest Divorce Rate

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expensive divorce, divorce cost

Why is Divorce So Expensive? 5 Reasons from Laura Wasser

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mediation, divorce budget

Divorce Mediation Cost: Budget Accordingly

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divorce process, divorce rights

My Husband Wants a Divorce, What Are My Rights?

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mediation, divorce decree

Marital Settlement Agreement vs. Divorce Decree: What is The Difference?

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Children and Divorce, divorce in Texas

The Texas Divorce Forms For Spouses Without Children

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Separation, divorce process, family pets

During a Divorce or Separation, What Happens to The Family Pet?

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divorce in Texas, divorce terms

How Long Does It Take To Get A Divorce In Texas?

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mediation, arbitration

Which Is Better? Mediation vs. Arbitration

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divorce in california, no fault divorce

California No Fault Divorce

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divorce in Texas, adultery, laws

Texas Divorce Laws About Adultery

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divorce terms, divorce in new york

How Long Does It Take to Get a Divorce in New York?

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child custody, custodial parent

Custodial Parent: Meaning and Responsibilities

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Separation, divorce process, Divorce

Separation vs Divorce: How To Understand the Process

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child custody, parental kidnapping

What To Do? Parental Kidnapping and No Custody Order