Asset & Property Division

When it comes time to divide property and assets in a divorce, many people think that there is an automatic 50/50 division of assets. Other people think that whatever assets they had at the time they got married are theirs to keep.   However, Connecticut follows the “equitable distribution” approach.  What does that mean, anyway?

The law of equitable distribution in Connecticut is based on the view of marriage as a “shared enterprise” to which both spouses contribute in all sorts of ways, and the idea that both spouses should benefit from the results of that shared enterprise.    

• The Court has the authority to divide not just the property acquired, received or earned during the marriage, but also the property acquired before the marriage, including assets from your family.  The Court can even divide your inheritance.  How a Court chooses to divide assets depends entirely on the facts and evidence presented to the Court.  Assets acquired before the marriage or through inheritance or gifts may be considered separate property by a Court, but this is not guaranteed. The Court has the discretion to include these in the division, based on the circumstances in a particular case.

Here are the key points regarding equitable division of assets in Connecticut:

What Does a Court Consider Property for Purposes of Division?

As basic as it may seem, before a Court can divide something between the parties, it first has to make a determination that the item in question is property.  In Connecticut, property  can include both physical items and intangible interests, but the item must either exist currently or be something that one party is likely to receive in the near future. The Court cannot divide something that is merely a possibility or hope for the future.

A few examples of what the Court considers property:

• Real property
• Personal Property
• Bank and Financial Accounts
• Stocks, Bonds and Investment Vehicles
• Vested pension benefits
• Unvested pensions
• Contractual rights
• Legal claims
• Benefits under an Irrevocable Trust
• Pets and livestock

A few examples of what a Court does not consider property:

• Educational degrees
• Future benefits under a Revocable Trust
• Future inheritances while the testator is still living

When Can a Court Divide Property in a Divorce?

Unless the parties getting divorced make an agreement about property before the divorce is final, a Court can only divide property at the end of a case.  So, if you’re moving out and you want to take specific items of personal property with you, your spouse needs to agree to what you’re taking (and get that in writing).

What are the Facts the Court Considers When Dividing Property in a Divorce? 

Connecticut Courts consider multiple factors when determining how to divide assets equitably.  However, they are not required to give equal weight to each factor.  These factors include:

• Length of the marriage: Longer marriages may lead to a more equal division, while shorter marriages might result in a division based on contributions to the marriage.
• Causes of the divorce: While Connecticut is a no-fault state (meaning you don’t have to prove wrongdoing to get a divorce), fault can still be considered in the division of assets.  If one spouse’s actions, such as infidelity, abuse, or financial misconduct contributed to the breakdown of the marriage, it may impact the division.
• Age and health of each spouse: The Court may consider the age and physical or mental health of each spouse when dividing assets.
• The station of the parties:  The Court may consider the lifestyle that the parties enjoyed during the marriage when deciding what’s fair in dividing assets. 
• The estate, liabilities and needs of each spouse: This can include presently available inheritances and trust benefits, as well as medical needs and the need for housing, income, or continued support after the divorce.
• The opportunity for future acquisition of assets and income: This considers whether one spouse has a greater ability to accumulate wealth post-divorce, which might justify giving the other spouse a larger share of the marital assets.  The Court will look at the current and future earning potential of both spouses, including their education, skills, and work history in making this determination. 
• Contributions of each party to the acquisition, preservation or appreciation in value of the existing assets: On this factor, Courts mayconsider not only who made the money, and when, but how the other party contributed to the family, including non-financial contributions, such as homemaking and raising children.

Who Has to Pay the Debts in a Divorce? 

Like assets, the responsibility for paying debts can also be divided a Court. This includes mortgages, credit card debt, tax liens, educational loans, past medical bills, and other liabilities. The Court may consider how and where the debt came from, and debt can be offset against property.  All things being equal, debts incurred on family-related expenses are more likely to be divided between the parties. Conversely, a Court is more likely to assign responsibility for debt incurred on non-marital pursuits like unreasonable frivolous spending the other spouse did not know about, gambling, substance use, money spent  on an extra-marital affair, only to the spouse who incurred such debts.  

Modification

Once the Court has issued a final judgment on the division of property, it is generally not modifiable, except under very specific circumstances, such as fraud, a mutual mistake, or the discovery of hidden assets.  If any of these circumstances exist in your case, you’re looking at a Motion to Open.  They are difficult to obtain, but if granted the Court will take another look at the entire financial picture in making its decision.  

The Effect of Alimony on How Property Gets Divided

While not directly part of asset division, Connecticut Courts also consider alimony in asset division. The need for and amount of alimony can influence how assets are divided.

Connecticut law aims to ensure that the division of assets is fair, but not necessarily equal, and the outcome can vary greatly depending on the unique circumstances of each case.  If your case includes complex assets or complicated considerations of fairness, you need an experienced attorney to guide you.