Define: Equitable Distribution

Equitable distribution is a legal principle used in divorce or dissolution proceedings to divide marital property and assets fairly and equitably between spouses. Unlike community property states, where marital property is typically divided equally, equitable distribution states aim to divide assets in a manner that is considered fair and just, taking into account various factors such as the length of the marriage, each spouse’s financial contributions, earning capacity, health, and childcare responsibilities. Equitable distribution does not necessarily mean an equal division of assets but rather a division that is deemed fair and equitable based on the circumstances of the marriage. Courts may consider a wide range of factors when determining the distribution of marital property, and the process may involve negotiation, mediation, or litigation to reach a final settlement.

A legal principle, followed by most US states, under which assets and earnings acquired during marriage are divided equitably (fairly) at divorce. In theory, equitable means equal, but in practice, it often means that the higher wage earner gets two-thirds to the lower wage earner’s one-third. If a spouse obtains a fault divorce, the “guilty” spouse may receive less than his equitable share upon divorce.

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This glossary post was last updated: 29th March, 2024.