Any larger share may exceed the dependent contribution. spouse’s Disproportionate Share Must be supported by a reasonable basis. Smith v. Smith (Tex. 2004). Court must provide an explanation, or it may be reversed. Gohl v. Gohl (Neb. 2005). Fault-Related Factors Pennsylvania No consideration of fault in distributing marital assets. – Other States Court may consider contributions to the marital breakdown in – determining equitable distribution of assets. Economic Fault (All States) Courts weigh economic fault in crafting equitable – distribution orders. Bad Behavior Does necessarily constitute dissipation. Walter v. Walter NOT – (N.C. 2002). Extrinsic Fraud Grounds for revisiting a distribution order. Polk v. Polk (Ohio 2010). – Usually requires experts to identify hidden funds. Assigning Assets to Marital Children Marital assets were deposited in a separate titled asset to benefit the children by providing for their college education. Asset is marital and reserved for the benefit of the children. Barnett v. Barnett (Miss. 2005). Post-Divorce Debts and Bankruptcy Allocating Debt Accrued During Marriage Liabilities/debts accumulated during marriage are marital property. Subject to division. E.g., borrowing; mortgages; car loans; business debts; obligations under contracts or judgments; etc. Community Property Rule All, or virtually all, of the marital property is – available for creditors of either spouse to seize in order to satisfy a debt incurred by either spouse during marriage. Sunkidd Venture, Inc. v. Snyder-Entel (Wash. 1997) Facts The tenant executed an extension of the lease with the landlord – before marrying his former wife. The landlord responded to the tenant’s notice to quit with certain charges and assigned its claim for them to the collection agency, which filed a complaint against the former wife in the district court. The former wife filed a answer denying any contractual relationship or duty to pay. debt incurred by either spouse Presumption of Community Debt – “A during marriage is a community debt. This presumption may be rebutted by clear and convincing evidence that the debt was not contracted for community benefit.” Test for Community Debt key test is whether, at the time – “The the obligation was entered into, there was a reasonable expectation the community would receive a material benefit from it. Actual benefit to the community is not required as long as there was an expectation of community benefit.”
Any larger share may exceed the dependent spouse’s contribution. Disproportionate Share Must be supported by a reasonable basis. Smith v. Smith (Tex. 2004). Court must provide an explanation, or it may be reversed. Gohl v. Gohl (Neb. 2005). Fault-Related Factors Pennsylvania – No consideration of fault in distributing marital assets. Other States – Court may consider contributions to the marital breakdown in determining equitable distribution of assets. Economic Fault (All States) – Courts weigh economic fault in crafting equitable distribution orders. Bad Behavior – Does NOT necessarily constitute dissipation. Walter v. Walter (N.C. 2002). Extrinsic Fraud – Grounds for revisiting a distribution order. Polk v. Polk (Ohio 2010). Usually requires experts to identify hidden funds. Assigning Assets to Marital Children Marital assets were deposited in a separate titled asset to benefit the children by providing for their college education. Asset is marital and reserved for the benefit of the children. Barnett v. Barnett (Miss. 2005). Post-Divorce Debts and Bankruptcy Allocating Debt Accrued During Marriage Liabilities/debts accumulated during marriage are marital property. Subject to division. E.g., borrowing; mortgages; car loans; business debts; obligations under contracts or judgments; etc. Community Property Rule – All, or virtually all, of the marital property is available for creditors of either spouse to seize in order to satisfy a debt incurred by either spouse during marriage. Sunkidd Venture, Inc. v. Snyder-Entel (Wash. 1997) Facts – The tenant executed an extension of the lease with the landlord before marrying his former wife. The landlord responded to the tenant’s notice to quit with certain charges and assigned its claim for them to the collection agency, which filed a complaint against the former wife in the district court. The former wife filed a answer denying any contractual relationship or duty to pay. Presumption of Community Debt – “A debt incurred by either spouse during marriage is a community debt. This presumption may be rebutted by clear and convincing evidence that the debt was not contracted for community benefit.” Test for Community Debt – “The key test is whether, at the time the obligation was entered into, there was a reasonable expectation the community would receive a material benefit from it. Actual benefit to the community is not required as long as there was an expectation of community benefit.”