Property Division: Is My Spouse REALLY Entitled to Half of My Assets?

A woman considers dividing her property division options in her divorce

When it comes to dividing your assets in a divorce, whose is whose? What’s fair? And what should you expect? Let the family law specialists at DBMA help you understand how the court views the division of property in a divorce and how you can prepare for the best possible outcomes. 

Oregon is an Equitable Distribution state

Oregon is what is called an equitable distribution state. Equitable distribution means that the court divides the parties’ property equitably (as in fairly, which doesn’t always mean “equally”) by considering numerous factors after first identifying when the property in question was acquired, how it was acquired, how it has been treated and how it fits into the overall division of assets and liabilities.  

We (and the court) recommend that anyone going through a divorce or legal separation work with a family law professional to properly sort out these matters. When it comes to the division of marital property — and often debt, as well — once the court has made its determination, it can be very difficult (and perhaps altogether impossible) to fix at a later date. 

Can’t agree on property division? The court will decide. 

In an ideal world, separating couples would be able to quickly and effortlessly agree on how to divide their property, but, as you can imagine, these situations can be difficult. Disagreements over who will keep a house and who has to move or what something is worth, the discovery of unknown debts, or the motivations that have caused the relationship to break down in the first place can hinder the possibility of finding consensus. 

When an agreement can’t be reached, the court steps in to make a determination for you. Both parties are required to exchange information about all property and debt (also often referred to as your assets and liabilities). If the sharing of information and negotiations do not lead to a resolution, one or both parties submit this information to support positions that are taken related to the item and a document called a proposed distribution of assets and liabilities.

What does “community property” mean?

There are very few community property states in the US and Oregon is not one of them.  Community property refers to property acquired during a marriage and in a community property state, those items are equally owned by both spouses. The concept of community property is similar to, but not the same as, the concept of a marital asset in Oregon.  

Under Oregon law, the rights of parties in marital assets, which are assets that are acquired during the marriage, shall be considered a species of co-ownership, and to those assets, there is a presumption of equal contribution which often results in the asset being equally divided. 

The concepts are similar, but different.

What happens in the instance of a stay at home spouse?

This is a factor that can sometimes cause confusion, especially when a relationship is breaking down and tensions can become heightened. In cases where one partner is a stay at home spouse, their non-financial contributions and contributions through homemaking are legally protected contributions and considered equally valuable to the marital partnership as an income-earning spouse.

Let’s be real: It takes work to manage a household, and that work, as it should, has value. 

What else do I need to know about property division in Oregon?

The property that you brought to the marriage could be considered in the overall division of assets and liabilities.  Additionally, the appreciation of premarital property is a marital asset and subject to the presumption of equal contribution.  

A gift or inheritance from a family member or friend? It is still a marital asset if it was acquired during the marriage.  As to these items, if the gift or inheritance was acquired by you alone and separately held, it is not subject to the presumption of equal contribution. 

Sometimes there is concern about a party draining financial resources, maxing out credit cards, and complicating the process of property division. After a divorce is filed, both parties are both subject to a statutory restraining order preventing the dissipation of assets that offers very limited exceptions.

Of course, this order is not always followed. In those instances, guidance and assistance from legal counsel is advised.

We want you to get what is just and equitable — it’s what you deserve!

At DBMA Family Law, our goal is to provide you with the legal counsel you need so that you may move on to the next chapter of your life as quickly and as fairly as possible. 

Our team is well versed in many aspects of family law, and specializes in traditional litigation, mediation, and collaborative law. When you’re in need of guidance for sensitive family law issues, call on DBMA. Contact us today for your confidential consultation!