What Do You Divide in a Divorce? A Guide to Marital Assets

Dividing property in a divorce can be a complicated process. It’s crucial to understand what counts as marital property, what is exempt, and how assets and debts are split. Here’s what you need to know.

What Is Marital Property: What Money Cannot Be Touched in a Divorce?

In a divorce, marital property generally includes assets and debts acquired during the marriage. This includes everything from the family home to joint bank accounts and even debts like credit cards. However, there are two important exceptions to this rule: gifted property and inherited assets. These are considered separate property, meaning they aren’t subject to division during the divorce.

What Happens to a Business in Divorce?

The division of a business during a divorce depends on how the business is structured. For instance, if one spouse owned a business before the marriage, it might still be considered separate property. However, if the business grew in value during the marriage, the increase in value may be split between both parties. The complexity of this division makes it essential to consult a lawyer, particularly when dealing with incorporated businesses or LLCs.