The best states to get divorced in if you are much richer than your spouse
Keith Beaty / Getty
If the breadwinning spouse happens to be you, your assets will be protected in most US states, which observe equitable distribution law.
In these 41 states, a marital estate is made up of assets acquired under each spouse's name; they're not technically considered "community property" (unless both names are on the deed or the asset is dependent children).
So upon divorce, these assets - real estate, income, cars, jewelry, furniture, stocks, and retirement accounts - are divided "fairly" at a judge's discretion, taking into account each person's earning potential or income, financial needs, contributions, and personal assets, rather than simply splitting it 50/50.
In contrast, Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington, and Wisconsin (and Alaska by opt-in agreement) observe community property law, meaning a 50/50 split applies to the couple's entire marital estate. Here, everything acquired throughout the marriage is considered joint property (except assets given as a gift or inherited, or separate property owned before marriage, so long as stayed separate throughout the marriage).
So if you've been earning six figures for the entirety of your 10-year marriage and your spouse has earned significantly less, you'll more than likely be better off post-divorce if you live in an equitable distribution state where your ex-spouse isn't automatically entitled to half of the wealth you've accumulated.
It's possible that a judge in one of the 41 equitable distribution states will decide to split the assets 50/50 anyway after taking a variety of factors into account, but it's not a given. And even so, couples are generally encouraged to arrive at a settlement agreement before a judge has to weigh in. You've got a better shot at keeping more of the personal riches you've acquired in this scenario.
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 below to find out if the state you live in observes equitable distribution or community property law.
Andy Kiersz/Business Insider
- A couple accidentally shipped their cat in an Amazon return package. It arrived safely 6 days later, hundreds of miles away.
- A centenarian who starts her day with gentle exercise and loves walks shares 5 longevity tips, including staying single
- 2 states where home prices are falling because there are too many houses and not enough buyers
- "To sit and talk in the box...!" Kohli's message to critics as RCB wrecks GT in IPL Match 45
- 7 Nutritious and flavourful tiffin ideas to pack for school
- India's e-commerce market set to skyrocket as the country's digital economy surges to USD 1 Trillion by 2030
- Top 5 places to visit near Rishikesh
- Indian economy remains in bright spot: Ministry of Finance
- JNK India IPO allotment date
- JioCinema New Plans
- Realme Narzo 70 Launched
- Apple Let Loose event
- Elon Musk Apology
- RIL cash flows
- Charlie Munger
- Feedbank IPO allotment
- Tata IPO allotment
- Most generous retirement plans
- Broadcom lays off
- Cibil Score vs Cibil Report
- Birla and Bajaj in top Richest
- Nestle Sept 2023 report
- India Equity Market