Massachusetts follows equitable distribution, which means marital property is divided fairly in a divorce, but not necessarily 50/50. A judge can consider the spouses’ finances, contributions to the marriage, future needs, and other factors when deciding how assets and debts should be allocated.
That gives Massachusetts courts considerable discretion. It also means that understanding what property may be divided, how it should be valued, and which factors may affect the outcome can be an important part of preparing for divorce.
What Does Equitable Distribution Mean in Massachusetts?
Under Massachusetts General Laws Chapter 208, Section 34, a court may assign property from one spouse to the other as part of a divorce. Unlike states that generally divide marital property equally, Massachusetts allows judges to determine what distribution is equitable based on the circumstances of the marriage.
An equitable division could be close to 50/50 in some cases. In others, the court may determine that a different allocation is fair.
Spouses can also reach their own property settlement rather than having a judge decide. If they cannot agree, the court can make the final determination.
What Property Can Be Divided in a Massachusetts Divorce?
Massachusetts takes a broad approach to property division. The court may consider property owned by either spouse, regardless of when or how it was acquired.
Assets that may be considered include:
- The marital home and other real estate
- Bank and investment accounts
- Retirement accounts and pensions
- Business interests
- Vehicles and valuable personal property
- Certain property acquired before the marriage
- Inherited property or gifts received by one spouse
This does not mean every asset will necessarily be divided. The source of an asset, when it was acquired, how it was used during the marriage, and the spouses’ circumstances can influence whether and how it is included in the final distribution.
What Factors Determine Equitable Distribution in Massachusetts?
Massachusetts law identifies a number of factors courts must or may consider when dividing property. These include the length of the marriage, each spouse’s age and health, income, occupation, employability, liabilities, and future opportunities to acquire assets and income.
The court can also consider each spouse’s contribution to the acquisition, preservation, or appreciation of marital property. Contributions as a homemaker are expressly relevant as well. This can matter when one spouse earned more income while the other devoted substantial time to raising children or managing the household.
A judge may also consider the present and future needs of dependent children.
Does Equitable Distribution Include Debt?
Property division is not limited to assets. Debts may also need to be addressed during divorce.
Mortgages, credit card balances, personal loans, tax obligations, and other liabilities can affect the overall division. Who incurred a debt and why may matter, along with the spouses’ ability to pay it.
Dividing responsibility in a divorce judgment also does not automatically change a creditor’s contractual rights. For example, if both spouses remain named on a joint loan, the lender may still be able to pursue either borrower if payments are missed.
How Are Complex Assets Divided?
Some assets require additional work before they can be distributed fairly. A closely held business may need to be valued. Retirement benefits may require specialized calculations or a separate court order to divide them. Real estate may need an appraisal.
Disagreements can also arise over inherited assets, property owned before the marriage, or assets that increased substantially in value while the couple was married.
We can help identify which assets may be subject to division, determine what financial information is needed, and evaluate proposed settlements in light of your longer-term financial position.
Can a Prenuptial Agreement Affect Property Division?
Yes. A valid prenuptial or postnuptial agreement may establish how certain property will be treated if the spouses divorce.
The existence of an agreement does not always end the inquiry, however. Questions may arise about its validity, enforceability, or application to particular assets. If you have a marital agreement, it should be reviewed early in the divorce process.
Plan for the Financial Side of Your Divorce
Equitable distribution can have lasting consequences for your home, retirement savings, business interests, and overall financial stability. Before agreeing to a property settlement, it is important to understand what is included in the marital estate and how Massachusetts law may apply to your circumstances.
At Fulcher Family Law, we help clients evaluate assets and debts, address disputed property issues, and pursue fair divorce settlements. Contact us to schedule a consultation and discuss your financial concerns and goals.