Equitable distribution is the division of marital property between spouses in a divorce. The goal of equitable distribution is to divide the property fairly, based on the circumstances of the marriage and the needs of the parties.
Factors the court considers when dividing property include:
The length of the marriage
The income of each spouse
The assets and debts of each spouse
The needs of any children of the marriage
The contributions of each spouse to the marriage, both financial and non-financial
Property is divided into marital property and nonmarital property. Marital property is property acquired during the marriage, while nonmarital property is property acquired before the marriage or inherited or gifted during the marriage.
Dissipated assets must not be included in equitable distribution unless the trial court makes a specific finding that the spending spouse caused the dissipation through intentional misconduct.
The court may award a lump sum equalizing payment to accomplish equitable distribution. However, the court must consider the ability of the paying spouse to make the payment without substantially endangering his or her economic status.