Dividing real estate during a divorce often brings significant challenges. If you and your spouse own a home or other property together, understanding how Indiana law works helps you make informed decisions.
All property goes into one pot
Indiana follows a “one pot” principle. This means the court places all property into the marital estate, no matter when or how either of you acquired it. The law treats assets the same, whether you titled them individually or purchased them before marriage. Unless you signed a prenuptial or postnuptial agreement, you must include all real estate—residences, rental properties, land, and business-related property—in the division process.
How the court handles division
Indiana courts focus on fairness rather than equal distribution. Judges examine factors such as the length of the marriage, both spouses’ financial contributions, and your overall economic situation. If children live in the home, the court often prioritizes keeping them there to support stability.
A judge may award the home to the spouse who can afford to maintain it. To balance the division, the judge may grant more of the remaining assets to the other spouse. Courts tailor outcomes based on your specific situation, not a strict 50/50 rule.
Selling the property might make sense
If neither of you can afford the property, the court may require you to sell your home according to Indiana Code 31-15-7-4(b). In these situations, you split the proceeds in a way the court deems fair. Selling the home can simplify the process when both spouses cannot keep it.
Business-related property creates extra steps
When a piece of real estate is directly tied to a business, the court adds steps to the division process. Judges often require a formal business valuation to assess the property’s role and value. This step helps ensure the division reflects the property’s true contribution to the business.
Understanding how Indiana law addresses real estate during divorce gives you the tools to plan effectively. The court reviews each asset carefully and shapes the division around your specific financial landscape. If you have questions about how your property might be divided in your divorce proceedings, you should reach out to knowledgeable property division lawyers for guidance.