Division of Assets 

2. Timing of Acquisition

• During the Marriage: Assets acquired from the date of marriage until the date of separation (or another specific cutoff date) are generally considered marital property. This includes things like earnings, real estate purchases, and contributions to retirement accounts.
• Before or After the Marriage: Assets acquired before the marriage or after the separation are usually considered separate property, although there are exceptions, particularly if marital funds were used to enhance the value of separate property.

3. Commingling of Assets

• Mixing of Marital and Separate Assets: If separate property is mixed with marital property, it may lose its separate status and be considered marital property. For example, if one spouse deposits an inheritance into a joint bank account used by both spouses, that money may be treated as marital property.
• Transmutation: This occurs when separate property is treated in a way that it becomes marital property. For example, if a spouse puts a separate property home in both spouses’ names, it may be considered marital property.

4. Title and Ownership

• Ownership Documents: The name on the title or deed is not necessarily determinative. Even if only one spouse’s name is on a deed, if the property was acquired during the marriage with marital funds, it is likely to be considered marital property.
• Joint Accounts: Funds in joint accounts are typically presumed to be marital property, even if one spouse contributed more to the account.

5. Gifts and Inheritances

• Gifts: Gifts received by one spouse from a third party during the marriage are generally considered separate property, unless the gift was intended for both spouses.
• Inheritances: Inheritances received by one spouse during the marriage are usually considered separate property, provided they are kept separate and not commingled with marital assets.

6. Prenuptial and Postnuptial Agreements

• Agreements Between Spouses: If the spouses have a prenuptial or postnuptial agreement that specifies how certain assets will be treated, the court will usually honor this agreement. Such agreements can define what is considered marital or separate property.

7. Use and Contribution

• Contribution to Property: If one spouse contributes significantly to the improvement or upkeep of separate property during the marriage (e.g., using marital funds to renovate a home owned by one spouse before the marriage), the court may consider part or all of the property to be marital property.
• Use of the Property: How the property was used during the marriage can also affect its classification. For example, if a separate property is used as the family home, it might be subject to different considerations.

Valuing Marital Property

The court must determine the value of marital property before dividing it between spouses. It follows a systematic process to ensure a fair and accurate assessment. Here’s an overview of how courts typically approach this task:

1. Appraisal and Valuation

• Professional Appraisals: Courts often rely on professional appraisers to determine the value of significant assets, such as real estate, businesses, and valuable personal property (e.g., jewelry, artwork).
• Financial Accounts: For assets like bank accounts, stocks, bonds, and retirement accounts, the court will use the current market value or the account balance at a specific date, often the date of separation or trial.
• Personal Property: Items such as vehicles, furniture, and collectibles are typically valued at their fair market value, which is the price they would fetch in the open market.

2. Date of Valuation

• Valuation Date: Courts may use different dates for valuing property, such as the date of separation, the date of filing for divorce, or the date of the trial. The chosen date can significantly impact the value, especially for volatile assets like stocks.

3. Consideration of Liabilities

• Debts and Liabilities: The court also considers the debts associated with marital assets. For example, the value of a house is determined by subtracting the mortgage balance from the market value of the property.

4. Expert Testimony

• Use of Experts: In complex cases, courts may rely on expert testimony from financial analysts, business valuation experts, or other specialists to provide a thorough and accurate valuation of marital property.

5. Agreed Valuations

• Agreements Between Parties: Sometimes, spouses may agree on the value of certain assets, which the court will then accept. If there’s a dispute over the value, the court will make the final determination based on evidence.

6. Adjustments for Future Taxes and Costs

• Tax Implications: Courts may adjust the value of certain assets to account for future tax liabilities or costs of sale, especially for assets like retirement accounts or real estate that may incur capital gains taxes or penalties upon liquidation.

Accurate valuation is crucial, as it directly impacts the division of assets in a divorce, and having legal representation can help ensure that your interests are protected throughout this process.