Property Division Legal Assistance
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Property Division in a Utah Divorce – What You Need to Know
- Marital property typically includes money and assets acquired during marriage—regardless of who earned it and regardless of whose name in which it is titled.
- Inheritance and premarital property can remain separate—but only with proper handling.
- Courts divide marital property “equitably,” not necessarily equally.
- Lawsuits, businesses, and even personal injury awards may be considered marital property.
- Attempting to hide or manipulate property during divorce can backfire—ethically and legally.
Understanding Property Division in Utah Divorce: What’s Marital, What’s Not, and What Courts Will Do
Dividing property in divorce is rarely as simple as “you take yours, I’ll take mine.” In Utah, the division of property is governed by the principle of equitable distribution—meaning the court divides assets fairly, not always equally. Knowing what counts as “marital property,” how Utah courts treat separate property, and how to protect your interests is crucial.
What Is Marital Property?
In general, marital property includes all assets acquired by either spouse during the marriage, regardless of who earned the money or whose name is on the title. This can include:
- Income from employment
- Real estate
- Retirement accounts (401(k), pensions, etc.)
- Vehicles, furnishings, and household goods
- Businesses started or grown during the marriage
Even if one spouse did not work outside the home, the law recognizes the contributions of both parties. That’s why, even in marriages where one spouse was the sole income earner, the court may still divide those earnings equitably between both parties.
What Is Not Marital Property?
Property may be considered separate and thus excluded from division if it:
- Was acquired before the marriage
- Was inherited by one spouse alone
- Was a gift from a third party specifically to one spouse (not an “interspousal gift” from one spouse to the other)
However, there are exceptions. If separate property is co-mingled with marital property (e.g., placing inherited money into a joint account or using premarital property to buy the marital home), it can lose its separate character.
Even separate property can become marital through commingling or by being used in ways that benefit the marriage. And separate property is not beyond the reach of the divorce if unique circumstances exist to justify reallocating premarital property as part of a property division incident to divorce.
Lawsuits, Inheritances, and Unusual Assets
Some assets occupy legal gray areas. For example:
- Lawsuit judgments: In Andersen v. Andersen, the Utah Court of Appeals clarified that damages awarded for lost wages during the marriage are marital, while compensation for pain and suffering may be separate.
- Inheritances: Generally separate, but subject to scrutiny if used for joint purposes.
- Workers’ comp and personal injury awards: These can be partially marital, depending on what the award compensates.
Also note that “paper-only” ownership does not control. If a property acquired during the marriage is titled solely in one spouse’s name but was paid for with marital funds, the court may still classify it as marital.
What Happens When One Spouse “Holds Property Hostage”?
Attempts to hide, gift, or unreasonably delay the division of marital property often do more harm than good. Courts see through tactics like:
- “Temporarily” transferring assets to a friend or relative
- Withholding a spouse’s personal property out of spite
- Selling or encumbering property during pending divorce proceedings
Such behavior can lead to court sanctions or an unfavorable division of assets. Judges are quick to spot pettiness masquerading as legal maneuvering—and they don’t like it.
What About Premarital Homes and Businesses?
A spouse may claim some interest in premarital property, especially if the property increased in value during the marriage due to joint efforts or contributions. A premarital home that became the family residence, or a business that was actively built during the marriage—even if started before—can become partly marital.
Additionally, just because something is “in your name” doesn’t mean you’ll keep all of it. The court looks at when and how the asset was acquired, used, and maintained, not just title.
Equal Doesn’t Always Mean 50/50
Equitable distribution takes into account multiple factors, such as:
- Duration of the marriage
- Each party’s financial and non-financial contributions
- Future earning potential
- Fault or misconduct (in rare cases)
Infidelity, emotional abuse, or financial recklessness can occasionally affect how property is divided, but Utah courts generally do not “punish” one party unless their conduct had a clear economic impact.
How to Protect Your Property
I personally don’t like the idea of “protecting my property from my spouse”; a marriage is intended to make one out of two, and that means “what’s mine is yours,” but that kind of thinking is, sadly, falling out of favor. But if you want to ensure your premarital and separate property is “protected” from your spouse, you can help safeguard your interests by:
- Keeping inherited or premarital property separate.
- Not co-mingling or jointly titling the assets you wish to protect.
- Keeping clear records of asset origins and contributions.
- Not attempting to hide or dissipate property—it almost always backfires.
- Considering a prenuptial or postnuptial agreement if appropriate.
The Bottom Line
If you’re facing divorce in Utah, understanding the difference between marital and separate property—and how Utah divorce courts treat each—is vital to achieving a fair outcome. Whether your concerns involve your paycheck, your business, inherited or gifted property, or premarital property, don’t rely on myths or laypersons’ advice. Learn the law and get competent legal advice for your specific situation.
