Indiana Property Division: The One Pot and Equal Division

By the FigureMyTax Editorial Team · How we calculate

Indiana is not a community property state: the court divides all of the parties’ property in one pot, whenever acquired, and presumes that an equal division is just and reasonable, a presumption a party can rebut on five statutory factors.

A one-pot state

The IRS describes the nine community property states in Publication 555: Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington and Wisconsin. Indiana is not one of them. In an action for dissolution of marriage, the court divides the property of the parties, whether owned by either spouse before the marriage, acquired by either spouse in his or her own right after the marriage and before final separation, or acquired by their joint efforts (Indiana Code 31-15-7-4(a)).

The equal-division presumption

The court presumes that an equal division of the marital property between the parties is just and reasonable. A party who presents relevant evidence, including evidence on the factors in the statute, may show that an equal division would not be just and reasonable (Indiana Code 31-15-7-5). See premarital property, gifts and inheritances for the factor that most often matters.

How the court carries it out

The court divides the property in a just and reasonable manner by dividing it in kind; by setting it over to one spouse and requiring either spouse to pay an amount, in gross or in installments, that is just and proper; by ordering a sale and dividing the proceeds; or by ordering a percentage of certain retirement benefits to be paid to a spouse when they are received.

The five factors

(1) Each spouse’s contribution to the acquisition of the property, whether or not it was income producing; (2) the extent to which the property was acquired before the marriage or through inheritance or gift; (3) each spouse’s economic circumstances when the disposition takes effect, including the desirability of awarding the family residence, or the right to dwell in it, to the spouse having custody of the children; (4) the parties’ conduct during the marriage related to the disposition or dissipation of their property; and (5) the earnings or earning ability of the parties.

Maintenance is rare, so property matters

Because maintenance is allowed in only three situations, a court that finds an equal division unfair can address the gap through the property split instead. See the Indiana alimony calculator.

Documents to gather

Deeds, titles, account and retirement statements, loan balances and tax returns with dates acquired, and any evidence for the factors above.

Test a split

The Indiana property division calculator starts at an equal share and lets you test other shares and the equalizing payment each one implies.

Frequently asked questions

Official sources

• Indiana Code 31-15-7-4: division of property
• Indiana Code 31-15-7-5: equal division presumption
• IRS Publication 555: community property states

This is general information, not legal advice. It is based on the cited Indiana statutes, rules and court opinions, and every case turns on its own facts. Confirm how the law applies to your situation with a licensed Indiana attorney.