A Guide To Equitable Distribution Of Assets - Rhode Island Divorce
What is Equitable Distribution? A Rhode Island Divorce Lawyer Explains
Even if you both agree that splitting up is for the best, there are still plenty of stressful decisions you’ll need to make before you can finalize a divorce–like how you’ll divide your assets. Property division is often one of the most heated sources of contention during divorce negotiations. After all, you deserve your fair share of hard-earned assets from your marriage. Rhode Island abides by the theory of equitable distribution and we will attempt to clarify below
Rhode Island operates under equitable distribution laws, which are designed to give each person a “fair share” of their community property in a divorce. Here’s what you need to know about Rhode island’s equitable distribution laws explained by a Rhode Island divorce attorney, Bryan Nappa.
What is community property?
Community property includes any income, personal property, or debts that you or your spouse obtained during the marriage. Community property is sometimes called “marital property” and is considered to belong to both spouses jointly.
In a divorce, community property is subject to Rhode Island’s equitable distribution laws.
What is equitable distribution?
Equitable distribution is a system of property distribution that is used to divide community property between both spouses in the event of divorce. Rhode Island is one of 41 equitable distribution states in the United States.
The goal of equitable distribution is to give each spouse a “fair share” of the community property. That fair share isn’t always an equal 50/50 split.
What equitable distribution includes
Any community property is subject to Rhode Island’s equitable distribution laws.
Common examples of community property can include:
● Both spouse’s income
● Shared bank accounts
● Large purchases, such as homes or cars
● Appreciation of equity in real estate, even if owned prior to marriage
● Retirement and investment accounts
● Valuable purchases, such as artwork
● Any other assets acquired using shared funds during the marriage
Essentially, any income or purchases obtained with joint income made during the marriage qualify as community property. That’s true even if only one spouse’s name is on the deed, such as with a car or home.
Any debts that you acquired during the marriage are also considered community property and will be divided equitably between both spouses.
What equitable distribution does not include
Not everything you own is subject to equitable division in a divorce. Separate property, sometimes called non-marital property, is not subject to Rhode Island’s equitable distribution laws.
Separate property includes assets you acquired before your marriage. For example, if you bought a car before getting married, then the car is considered separate property and belongs to you alone.
Inheritance is considered separate property in Rhode Island, even if it was acquired during the marriage. Gifts given to you by third parties during the marriage are also considered separate property.
However, you must be careful not to “comingle assets.” If your inheritance or other typically non-marital assets are comingled, they might be subject to equitable distribution. If you’re unsure whether or not something qualifies as separate or community property, consult with a Rhode Island divorce lawyer.
How to calculate equitable distribution
Because so many factors affect equitable distribution, judges have a great deal of leeway when determining what a “fair share” of community property looks like. It’s greatly dependent on individual circumstances.
Some of the factors that might affect a judge’s decision on equitable distribution include:
● Marital Fault – In an at-fault divorce, the spouse found at fault might receive a lower share of the assets. While infidelity doesn’t usually affectproperty division agreements, if one spouse used shared funds to finance an affair, they may be less likely to receive a higher percentage of community property.
● The value of each spouse’s separate property – If one spouse has a higher amount of separate property or more valuable separate property, then they may be less likely to receive a higher share of community property.
● Current or potential income – the income-earning ability of both spouses will be taken into consideration. The degree to which each spouse contributed to community property may also be a factor in equitable distribution.
● Economic Misconduct – If one spouse has a history of irresponsible or frivolous spending of marital assets, they may be less likely to receive a higher share of community property. Examples of “irresponsible spending” in Rhode Island include gambling, fraud, or other wasteful purchases
● Child custody – If one parent has sole custody or primary custody of minor children, they may receive a higher share of community property to ensure that the children are properly cared for.
● Age and overall health of both spouses – If one spouse is in poor health or their age would make it difficult to rejoin the workforce, they may be more likely to receive a higher share of community property. Alimony or spousal support could also play a factor in some cases.
● Educational contribution – If one spouse directly contributed to another spouse’s education, such as paying for tuition, they may receive a higher share of community property. This is because receiving education may have improved the other spouse’s earning potential.
How does a prenup affect equitable distribution?
A prenuptial agreement, or prenup, is a legal document that two people sign before marriage. A prenup usually lists the assets and debts of each spouse and outlines stipulations for how they should be handled in the event of a divorce.
A prenup takes priority over Rhode Island’s equitable distribution laws–even for assets that might be considered community property. This can make a prenup a convenient way to avoid arguments over community property in the event of divorce.
If you’re unsure of how a prenup affects your current situation, contact a RI divorce lawyer to analyze your situation for you.
Other ways to settle community property disputes
Even if you don’t have a prenup, a Rhode Island courtroom isn’t your only option for settling marriage property disputes.
You can settle things outside of court via negotiations with your ex. If you both can come to your own agreement on what a “fair share” looks like for each of you, then it’s possible to avoid the hassle of a courtroom battle altogether. A judge will typically honor any agreement that a couple can agree on, so long as it doesn’t harm any minor children involved in the divorce.
However, when tensions run high and emotions are still raw, negotiating objectively can be tough. This is where having someone on your side can come in handy.
Need to talk to a Rhode Island divorce attorney?
If you have questions about Rhode Island divorce laws, one of the top RI divorce lawyers Brian Nappa is here for you.
Whether you need help negotiating with an ex-spouse, need someone to fight for your rights in court, or you’ve got questions about prenups Nappa Law can help you through the whole legal process.
Contact Nappa Law today to learn more.