When fashioning an equitable distribution plan, does it matter that assets are titled solely to one spouse or the other? The answer is: Yes and no.
Think of the assets and liabilities of a marriage collectively as a pie. From the standpoint of determining what goes into the pie filling, legal title is irrelevant. Everything obtained by the parties during the marriage, however titled, is a part of the marital “pie”. But, from the standpoint of actually dividing the “pie”, title can play a very important part.
Consider a simple example. The marital “pie” consists of a car, titled solely to the Husband, worth $10,000.00, and a bank account, titled solely to the Wife, worth $10,000.00. An equal splitting of this pie could result in the Husband getting the car and the Wife getting the entire bank account. But, what if the car is actually the child’s car? Or the Wife’s car that had to be titled to the Husband because the Wife had bad credit? Or what if neither party wants the car at all? Or what if both parties need some cash? Might it make sense to sell the car and split the proceeds, then split the bank account by having the Wife give the Husband $5,000.00? That would be an equal division. Or maybe the parties can have the car re-titled to the Wife or the child, and split the bank account. Maybe the Wife gets both the car and the bank account, but pays the Husband $10,000.00. Often, the easiest, or most practical, solution will be used.
If you have an equitable distribution question, contact an experience family law attorney.