The division of assets is often one of the most difficult portions of divorce. Those who enter a marriage work together to build their estate. One partner may have taken on the bulk of homemaking responsibilities, allowing the other to focus on work and grow in their earning potential. This can have a negative financial impact on the other spouse both immediately following the divorce and into the future as it is difficult to regain the time to focus on one’s professional growth.
Courts often struggle with determining the right allocation of assets in these circumstances. Hawaii attempts to address this issue through the use of the Marital Partnership Model. This model provides a unique approach that aims to help better ensure equitable distribution of assets. It categorizes property into distinct groups, each with its own rules for division. It is helpful for those going through divorce to understand these categories and the principles behind them.
What is the Marital Partnership Model?
Hawaii’s Marital Partnership Model has a rich history and is designed to reflect the idea that marriage is a partnership, with both parties contributing to the accumulation of assets. It views the financial side of the marriage akin to a business partnership. Courts use this model to determine how to divide property when a marriage ends. Unlike community property states where assets are split 50/50, Hawaii’s approach is more nuanced, focusing on fairness and equity.
How does this model guide the division of property?
The Marital Partnership Model divides property into several categories, each with specific guidelines for distribution:
- Category 1: Premarital property. This includes assets owned by either spouse before the marriage. Generally, these assets remain with the original owner unless commingled with marital property.
- Category 2: Appreciation of Category 1. This refers to the amount of growth that occurred to property in Category 1 during the marriage. A portion of the growth of these assets generally goes to the non-owning spouse.
- Category 3: Gifts and inheritances during marriage. Courts in Hawaii typically consider property received as a gift or inheritance during the marriage as separate property. Such assets are usually not subject to division unless integrated into marital property.
- Category 4: Appreciation of Category 3. Much like Category 2, this Category includes the growth of the assets within Category 3 and provides a portion of that value to the non-owning spouse.
- Category 5: Marital property. This includes assets acquired during the marriage through joint efforts and is generally subject to equitable distribution, meaning it is divided fairly, though not necessarily equally.
Courts may also take a sixth category into account to address the change in assets after the final date of separation but before the parties finalize the divorce.
What factors influence equitable distribution?
As noted above, the court aims for a fair, though not necessarily equal, division of assets. To reach this goal, it will take various factors into consideration. This can include financial contributions and non-financial contributions such as homemaking and child-rearing as well as the financial situation of each spouse post-divorce. The court may also take the length of the marriage into account. As such, longer marriages may result in a more equal distribution of assets.
How can I better ensure a fair division of assets?
Those who are working through a divorce are wise to put together a comprehensive inventory of all assets and liabilities. Both parties should gather relevant financial documents, such as bank statements, property deeds, and investment records. This will aid in filling out necessary forms as well as establishing a clear picture of their financial situation. Even if the divorce is amicable, it is important for each partner to understand their legal rights and obligations before finalizing their divorce settlement agreement. By maintaining transparency and focusing on equitable solutions, couples can work towards a fair and amicable division of assets.
Hawaii’s Marital Partnership Model aims to help achieve this goal with an emphasis on equity so both parties receive a fair share of the assets accumulated during the marriage. By learning how the courts use this system and knowing the factors that can impact their final determination, individuals can navigate their way through a divorce and mitigate the risk of any surprises after they finalize their divorce.