Several options may be considered when addressing the marital home during a divorce.
One spouse may wish to remain in the home, particularly when children are involved. In other situations, selling the property and dividing the proceeds may be an appropriate solution.
Dividing property and finances can be one of the most challenging parts of a divorce. Many people have questions about what will happen to their home, savings, retirement accounts, and other assets they have accumulated over the years.
Understanding how marital property is divided in Massachusetts can help you prepare for the decisions ahead. While every divorce is different, Massachusetts law provides guidelines for determining how property and financial responsibilities should be distributed between spouses.
Understanding Property Division in Massachusetts
Massachusetts follows a principle known as equitable distribution when dividing property during a divorce.
Equitable distribution means that property is divided in a manner the court determines to be fair based on the circumstances of the marriage and the parties involved.
An equitable division does not necessarily mean that everything will be divided equally. Although a 50/50 division may be appropriate in some situations, Massachusetts courts are not required to divide all assets in half.
Instead, the court considers several factors when determining how property should be distributed.
What Property Can Be Divided During a Divorce?
Property division may involve a wide range of assets and financial interests, including:
- The marital home and other real estate.
- Bank accounts, savings, and investments.
- Retirement accounts, pensions, and certain employment benefits.
- Vehicles and other personal property.
- Business interests.
- Outstanding debts and other financial obligations.
An important consideration under Massachusetts law is that property owned before the marriage, or received through an inheritance or gift, may also be considered when dividing assets.
This does not mean that every asset will automatically be divided. The court evaluates the circumstances surrounding the property and the factors established by Massachusetts law.
What Factors Does the Court Consider?
When spouses cannot agree on how their property should be divided, the Massachusetts Probate and Family Court may be asked to make that determination.
Under Massachusetts General Laws Chapter 208, Section 34, the court considers several factors, including:
- The length of the marriage.
- The age and health of each spouse.
- Each spouse’s income, occupation, and employment opportunities.
- The assets, liabilities, and financial needs of each spouse.
- Each spouse’s ability to acquire assets and income in the future.
- The conduct of the parties during the marriage.
- The amount and duration of any alimony awarded.
- The present and future needs of dependent children.
The court may also consider each spouse’s contributions to acquiring, maintaining, or increasing the value of property, as well as contributions made as a homemaker.
These considerations help the court determine what division of property is appropriate for the particular circumstances of the marriage.
What Happens to the Family Home?
For many couples, the family home is one of their most valuable assets and can also be one of the most emotionally significant.
If one spouse keeps the home, questions involving the mortgage, ownership, equity, and the ability to maintain the property may need to be resolved.
The appropriate arrangement depends on the financial circumstances of the parties and the other issues involved in the divorce.
How Are Retirement Accounts and Debts Handled?
Retirement savings and pensions can represent a substantial portion of a couple’s financial resources.
Depending on the circumstances, retirement benefits may be subject to division during a Massachusetts divorce. Certain retirement accounts require specific legal documents or procedures to divide benefits properly.
Debts are also an important consideration. Mortgages, credit cards, personal loans, and other financial obligations may need to be addressed as part of the overall property settlement.
It is important to understand that an agreement between spouses about responsibility for a debt does not necessarily change the rights of a lender or other creditor.
Careful attention to these financial details can help reduce the possibility of unexpected problems after the divorce.
Can Spouses Agree on How to Divide Their Property?
Not every divorce requires a judge to decide how assets and debts will be distributed.
Spouses may be able to reach an agreement through discussion, negotiation, or mediation. An agreement can address the division of property, responsibility for debts, and other financial matters.
When spouses reach an agreement, it can be presented to the court for review as part of the divorce process.
If an agreement cannot be reached, the court may ultimately determine how the property will be divided.
Preparing for Property Division During Divorce
Taking time to organize financial information can help you better understand the assets and obligations involved in your divorce.
Consider gathering documents such as bank statements, retirement account information, mortgage records, property valuations, tax returns, and records of outstanding debts.
Having accurate financial information can make discussions with your attorney more productive and help identify issues that may require additional attention.
You do not need to have every financial question answered before speaking with an attorney. An initial consultation can help you understand what information may be needed and how Massachusetts law may apply to your circumstances.
Getting Guidance for Your Financial Future
Property division can affect your financial stability long after a divorce is finalized. Understanding the general principles of equitable distribution can help you make informed decisions about your property, financial obligations, and future.
Patten Law Office assists individuals and families with divorce, property division, and other family law matters in Peabody and throughout Essex, Middlesex, and Suffolk Counties. If you have questions about dividing property during divorce or would like to discuss your circumstances with Attorney Lindsey A. Patten, contact Patten Law Office to schedule a consultation.
This article is provided for general informational purposes only and is not legal advice. Every situation is different. Reading this article or contacting Patten Law Office through this website does not by itself create an attorney-client relationship.