In 9 US states, a divorce means you'll lose half of everything you own - here's why

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Community vs equitable divorce

Andy Kiersz/Business Insider

Estimates of divorce rates in America vary, but the reality is a great many marriages reach this unfortunate conclusion, and the aftermath is frequently messy, both emotionally and financially.

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When a couple joins as one, their assets typically combine to form a marital estate, and anything they acquire thereafter becomes joint property. Upon divorce, those assets - including real estate, dependent children, income, cars, furniture, stocks, and retirement accounts - get divided between the former spouses.

Depending on the state you reside in, there are two ways your assets could be divided:

1. Community property: Marital assets - and debts incurred by either spouse during the marriage - are divided 50/50. However, separate property (anything held in only one spouse's name, including property owned before marriage, given as a gift, or inherited) is not taken into account. The states that observe this law are Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington, and Wisconsin. Residents of Alaska can opt-in to a community property agreement.

2. Equitable distribution: Marital assets (not including separate property) are divided by a judge with the goal to put each individual on equal financial footing, taking into account each person's earning potential or income, financial needs, and personal assets.

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To protect personal assets in either case, couples can set up a prenuptial agreement, which establishes terms for a division of assets in the event of a divorce.

Check the map above to find out if the state you live in observes equitable distribution or community property law.

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