Like most other states, Indiana is what commonly gets referred to as an “equitable division” jurisdiction when it comes to divorce.
In a nutshell, this means that a judge has to divide property between the divorcing spouses in a way that is fair.
Many judges will in practice try to divide the property 50-50 between spouses, especially since the law establishes a 50-50 division as a starting point. However, either spouse may raise appropriate arguments that they should receive a larger share of the property.
What makes Indiana different from most other states is that it follows what legal professionals call the one-pot theory of property division.
Basically, this means that all property or debts that each spouse owns or owes, as well as property and debts owned or owed together, is marital property.
Unlike many other states, Indiana law allows for no exceptions for gifts and inheritances or for property that a person acquired prior to marriage.
This does not mean that a person who, for example, received a large inheritance from their parents before their marriage will have to split it evenly with their spouse during a divorce. They are still free to argue under that law that they should receive more if not all of that inheritance.
Indiana’s one-pot property rules do not always make property division easier
While the one-pot theory eliminates arguments about separate property, it does not always make property division easier in a contentious divorce.
The couple may argue about the value of the property, and they may also have very different opinions about how to divide it fairly.
Those in the greater Indianapolis area who are going through a divorce will want to make sure that they understand their options with respect to property division. Overlooking details in this area could leave someone unnecessarily in a difficult financial position after their divorce.
