Understanding the Distribution of Marital Property in Massachusetts

Massachusetts as an Equitable Distribution State

Massachusetts follows the principle of equitable distribution when it comes to dividing marital property during a divorce. Unlike community property states, where assets are generally split 50/50, equitable distribution means that the division of property is based on what the court deems fair and just, considering various factors related to the marriage and the spouses. It’s important to note that “equitable” does not necessarily mean “equal.” The court has the discretion to award a larger share of the marital property to one spouse based on the circumstances of the case.

What Is Considered Marital Property?

Marital property in Massachusetts includes all assets and liabilities acquired by either spouse during the marriage, regardless of whose name is on the title. This can include:

Real Estate: The family home, investment properties, vacation homes, etc.
Personal Property: Vehicles, furniture, jewelry, artwork, etc.
Financial Assets: Bank accounts, retirement accounts, stocks, bonds, and other investments.
Business Interests: If either spouse owns a business, the value of the business may be considered marital property.
Debts: Credit card debt, mortgages, personal loans, and other liabilities accumulated during the marriage.

Property acquired before the marriage or through inheritance or gift from a third party is generally considered separate property and is not subject to division, unless it has been commingled with marital assets or used for the benefit of the marriage.

Factors Considered in the Distribution of Marital Property

Massachusetts courts consider several factors when determining how to distribute marital property. These factors are outlined in Massachusetts General Laws Chapter 208, Section 34, and include:

Length of the Marriage: The duration of the marriage plays a significant role in the division of assets. Longer marriages often result in a more equal division, while shorter marriages may see a division based more closely on each spouse’s contribution.
Conduct of the Parties During the Marriage: While Massachusetts is a no-fault divorce state, meaning that neither spouse needs to prove wrongdoing to obtain a divorce, the conduct of the parties during the marriage can still be considered in the division of property. For example, if one spouse has dissipated marital assets through gambling or infidelity, the court may take that into account.
Age, Health, and Income of the Parties: The court will consider the age, health, and income-earning capacity of each spouse. A spouse who is older, in poor health, or has limited earning potential may be awarded a larger share of the marital property to ensure their financial security.
Occupation and Employability: The court will evaluate the occupation, skills, and employability of each spouse. A spouse who has been out of the workforce for an extended period (e.g., to care for children) may receive a larger share of assets to compensate for their reduced earning potential.
Contribution to the Acquisition, Preservation, or Appreciation of Marital Property: Both financial and non-financial contributions are considered. This includes direct financial contributions, such as income earned during the marriage, as well as indirect contributions, such as homemaking and raising children.
Needs of the Children: If the couple has minor children, the court will consider the needs of the children, including their living arrangements and the primary caregiver’s ability to provide for them. This consideration may impact the division of the family home and other assets.
Current and Future Needs: The court will assess the current and future financial needs of each spouse. This includes considerations such as housing, education, and retirement.
Opportunities for Future Acquisition of Capital Assets and Income: The court will evaluate the likelihood of each spouse to acquire future assets and income. A spouse with greater potential to earn income or acquire assets may receive a smaller portion of the current marital property.

The Process of Dividing Marital Property

The process of dividing marital property typically involves the following steps:

Identification of Assets and Liabilities: Both spouses must disclose all assets and liabilities. This includes everything from real estate and bank accounts to retirement accounts and debts. Accurate disclosure is crucial, as hiding assets can lead to legal consequences.
Valuation of Assets: The value of each asset must be determined. This may require appraisals for real estate, businesses, and personal property, as well as statements for financial accounts. The date of valuation can vary and may be contested if the value of an asset changes significantly during the divorce process.
Negotiation or Mediation: In many cases, spouses can reach an agreement on the division of property through negotiation or mediation. This allows both parties to have a say in the outcome and can lead to a more amicable resolution. If an agreement is reached, it is submitted to the court for approval.
Court Intervention: If the spouses cannot agree on the division of property, the court will intervene and make the final decision. The judge will apply the factors outlined in Chapter 208, Section 34, to determine an equitable distribution of assets.

Special Considerations

Certain types of assets and situations require special consideration during the division of marital property in Massachusetts:

Family Home: The family home is often one of the most significant assets in a divorce. The court may award the home to one spouse, particularly if they are the primary caregiver of minor children, or it may order the home to be sold, with the proceeds divided between the spouses.
Retirement Accounts: Retirement accounts, such as 401(k)s and IRAs, are often subject to division. This typically requires a Qualified Domestic Relations Order (QDRO) to divide the accounts without incurring tax penalties.
Businesses: If one or both spouses own a business, its value must be determined, and the court must decide whether the business will be sold, whether one spouse will buy out the other’s interest, or whether the business will be awarded to one spouse with a corresponding adjustment in other assets.
Debts: Debts accumulated during the marriage are typically divided along with assets. However, the court may consider who incurred the debt and for what purpose when making its decision.

Conclusion

The division of marital property in Massachusetts is a complex process that requires careful consideration of many factors. Because Massachusetts is an equitable distribution state, the division of assets is based on fairness rather than strict equality. Understanding the legal standards and factors that influence this process can help spouses navigate their divorce with a clearer understanding of their rights and obligations. If you are going through a divorce, it is highly advisable to seek legal counsel from an experienced family law attorney who can help you protect your interests and ensure that the division of property is handled fairly and in accordance with Massachusetts law.