Understanding Utah’s Property Division Laws

One of the most contentious and emotional issues in a divorce typically concerns property division. When a couple decides to part ways, all assets that were acquired during the course of the marriage must be distributed between the spouses before the divorce can be finalized. However, property division can be complex — and it’s important to understand how assets are classified during divorce under Utah’s property division laws to help ensure a fair outcome is achieved in your case.

How is Property Divided in a Utah Divorce?

Utah follows the doctrine of equitable distribution when it comes to dividing marital property in divorce. This doesn’t necessarily mean that property will be divided equally — but rather, the law specifies that it must be distributed in a way that is deemed fair for both spouses. Courts evaluate a number of factors when determining a fair distribution of property, including the following:

• The duration of the marriage
• The age and health of each spouse
• The occupation of each spouse
• Each spouse’s source of income
• Other economic factors concerning the marriage

If the parties agree on property division, the judge will review the agreement to make sure it is fair to both spouses. If the couple cannot reach a settlement, a court will decide the outcome by applying the above factors. After a divorce has been finalized and the decree has been issued, a property division matter cannot be reopened except in very limited circumstances.

What is the Difference Between Marital Property and Separate Property?

It’s crucial to understand that only marital property is subject to division in divorce. Marital property is defined as any assets or property that were acquired by either spouse during the course of the marriage — regardless of which spouse’s name the asset is in. This is not to be confused with separate property, which is obtained prior to the marriage and belongs to the original owner. Separate property is not subject to equitable division in divorce.

Marital property can include a variety of assets that are acquired during a marriage, such as the following:

• Real estate, including the marital home and vacation homes
• Investment properties
• Vehicles
• Retirement accounts and pensions
• Bank accounts
• Artwork
• Jewelry
• Stocks, bonds, and investments
• Business interests
• Furniture

There are certain exceptions to the marital property rule. Inheritances in one spouse’s name are generally exempt from being classified as marital property, even if the funds or property were acquired during the marriage. However, if an inheritance was bequeathed to both spouses, it would be considered marital property.

What is Commingled Property?

Separate property can sometimes be transformed into marital property during the marriage. This happens when marital assets and separate property are commingled. For example, if separate funds were used to increase the value of the marital home or start a family business, it could be challenging to know how to classify the asset — and property division can become much more complex. In such instances, a spouse would be required to prove which assets are separate property by carefully tracing it back.

Does a Court Always Need to Decide How Property is Divided?

A judge doesn’t always need to determine how property is divided in a Utah divorce. Couples are free to reach a settlement amicably outside of court through negotiation or by participating in the mediation process. When spouses work together to decide how their property and assets should be divided, they can find creative solutions that work for them and their family. Importantly, the results that are reached outside of court are often very different from the decision a judge would render.

In addition, couples can determine issues pertaining to property division before divorce arises. For instance, a prenuptial agreement entered into before marriage — or a postnuptial agreement signed during the marriage can outline how assets should be treated in the event the marriage does not work out. By deciding these matters in advance, these contracts can help a couple avoid lengthy and costly divorce litigation in the future. Prenups and postnups can also be used as part of a comprehensive estate plan to protect the inheritance rights of any children from a previous marriage.

Contact an Experienced Utah Divorce and Family Law Attorney

If you are facing divorce, it’s essential to be aware of your rights when it comes to property division. A skillful family law attorney can provide you with the representation you need and help ensure your interests are protected. Based in Salt Lake City, BartonWood provides compassionate counsel and reliable representation to clients for a wide variety of divorce and family law issues, including those involving asset division. To learn more about our legal services and how we can assist you, call 801-326-8300 or contact us to schedule a consultation. If your divorce has been finalized, we invite you to read our blog "Steps to Take After a Divorce is Final."