Summary of Division of Property in Indiana

In Indiana, courts generally encourage spouses to come to an agreement themselves regarding property division (often in the form of a “Marital Settlement Agreement”). If spouses cannot agree, the court will divide the property according to Indiana law.

Indiana is referred to an “equitable distribution state.” This means that Indiana courts will go through the following process in dividing property between the spouses: First, the court will consider the property and debts of each of the spouses and whether specific property and debt should be considered marital property or nonmarital property. Second, the court will assign a value to the marital property and debt. Finally, the court will distribute the marital property (and debt) equitably.

It’s important to know what it means to divide property “equitably.” It does not necessarily mean equal or 50/50. Its meaning is closer to “just” and “reasonable.” This said, Indiana courts do start with a presumption that dividing property and debts equally is just and reasonable. This presumption may be rebutted by either spouse if that spouse is able to present evidence related to the following factors that shows that an equal division of the assets would not be fair or reasonable (see the Indiana Code at Title 31, Art. 15, Ch. 2):

• (1) The contribution of each spouse to the acquisition of the property, regardless of whether the contribution was income producing.
• (2) The extent to which the property was acquired by each spouse:
•    (A) before the marriage; or
•    (B) through inheritance or gift.
• (3) The economic circumstances of each spouse at the time the disposition of the property is to become effective, including the desirability of awarding the family residence or the right to dwell in the family residence for such periods as the court considers just to the spouse having custody of any children.
• (4) The conduct of the parties during the marriage as related to the disposition or dissipation of their property.
•    (A) a final division of property; and
•    (B) a final determination of the property rights of the parties.