Mediate Michigan

How you split assets in divorce depends largely on where you live.

California, Texas, Washington, Wisconsin, Arizona, Nevada, New Mexico, Louisiana, and Idaho are community property states. In these states, any community property assets — those accumulated by you and your spouse during the marriage — are owned 50/50. Therefore, each spouse is entitled to half of the total community property, minus liabilities. In contrast, assets that were owned by one spouse before the marriage, or that were received by one spouse as a gift or bequest during the marriage, are generally considered to belong solely to that person.

All other states are so-called equitable distribution states where you and your spouse must split things according to “whatever is fair” in the eyes of the divorce court. That often works out to a 50/50 split, but it’s not preordained. Of course, you and your spouse can agree out of court to your own version of “whatever is fair,” and the divorce court will generally go along with your proposed deal.

via What Divorce Means For Your Taxes – SmartMoney.com.