Property Division in Divorce — Rights and Options

What Enters Resource Equalization — and What Does Not

The basic rule: everything accumulated during the marriage is divided equally. This includes homes, vehicles, savings, shares, pensions, study funds, and businesses. Even assets registered solely in one party's name — if acquired during the marriage — enter the equalization.

What does not enter the equalization: inheritances received by one party (provided they were not mixed with joint property), personal gifts, assets that belonged to the party before the marriage (and were kept separate), and personal tort compensation. Proving that an asset “does not enter the equalization” requires clear evidence and an experienced attorney.

“Commingling of assets” is an important concept: if you received an inheritance and kept it in a separate account — it generally will not enter the equalization. But if you used it to purchase a joint home — it may be considered part of the joint property. It is important to document every such transaction.

The Family Home — What Happens?

The family home is usually the largest asset and the center of the dispute. If purchased during the marriage — it is joint property. The three main options: selling on the open market and dividing the proceeds equally; one party purchasing the other's share in payment; a “deferred” arrangement — the custodial parent stays with the children until a certain age and then the home is sold.

If the home is registered solely in one party's name — this does not mean it belongs to that party alone. If it was purchased during the marriage, it is still joint property. However, if it can be shown that part of the home was financed from non-joint assets (inheritance, pre-marriage asset) — it may be possible to exclude that portion from the equalization.

When both parties agree to sell the home, the remaining questions are: what is the right price, who is responsible for the process, and what happens with the mortgage. These are questions the attorney will help resolve.

Pension and Study Funds in Divorce

Pension rights are often the largest asset in a divorce — and yet they are commonly overlooked. Pension accumulated during the marriage is divided equally, regardless of whose name it accumulated in. Division is done through a pension order issued by the court to the pension fund.

It is important to check all funds: life insurance with savings (executive insurance), pension fund, savings account, and study fund. Each has a separate order and separate handling. Pension accumulated before the marriage is not necessarily joint property — only the portion accumulated during the marriage needs to be calculated.