1. MARITAL PROPERTY
Part II
February 17, 2004

2. Review: Three Systems OLD: Common Law/Title
* Financial Contribution to Property Key
NOW:
Community Property - Minority
* Property Acquired During Marriage=H & W
* JT Ownership During Marriage, At Death and Divorce
* Divorce: Often Equal Division Rule or Presumption
Equitable Division - Majority
* Does not change character of prop until divorce
* May start w/equal div presump but often weigh factors to determine final decision

3. Goals of Equitable Division?
Achieve FAIRNESS (EQUALITY?)
2) COMPENSATE (encourage) both financial and non-financial contributions to marriage
3) Support economically NEEDY spouse
4) PUNISH guilty/REWARD innocent

4. Three Step Method Classify Property: marital/non-marital
Value Property
3) “Distribute” Property

5. STEP ONE: CLASSIFY PROPERTY: MARITAL/ NON-MARITAL
[All property acquired during marriage except property acquired by gift or inheritance or traceable to either]
A. Is it property?
Can it be bought and sold?
Special rules for:
T/E real property
Pensions/retirement funds
Goodwill/Business or Professional
Appreciation
Lottery winnings
B. Acquired during marriage = sep or div?
C. Covered by any other exceptions?

6. STEP TWO: VALUE PROPERTY:
Fair Market Value – Debts Associated With
Property (Mortgage/Liens)
* When: date of separation/divorce?
* Special rules for particular assets –
pensions; businesses/professional practices

7. STEP THREE: DISTRIBUTE PROPERTY:
* What authority does court have?
Can it transfer real or personal property?
Can it grant monetary award?
* What standards/rules/factors does it use to
make decision?

8. Typical Factors for Step 3:
Monetary and Nonmonetary Contributions;
Economic Circumstances of Each Party;
Circumstances that Contributed to Div.;
Duration of the Marriage;
Age/Health of Parties
How Property Acquired (effort of each party)
Any Award of Alimony