Key Takeaways:

Oregon uses equitable distribution, as do most states, rather than community property, to divide assets and debts during a divorce.
Equitable doesn’t mean equal; it aims to divide assets between the parties fairly.
The goal is for both to maintain a standard of living similar to what they had when they were married.
Separate or premarital property is excluded and remains with the individual who earned it.
After assets and debts have been classified as marital or separate property, a value or liability is assigned to each.
The court then divvies them up between the two parties in the fairest, most egalitarian way possible.

Laws and regulations vary a great deal from state to state, so where you live often has a huge impact on your divorce, especially the division of property.

Though the regions to the north and south of us both take the community property approach, they’re actually in the minority. Only a handful of states—and Alaska by agreement—adhere to community property statutes. The rest practice equitable distribution, and Oregon falls into this category.

How Is Property Divided In Divorce In Oregon?

In community property states, all assets, property, and debts acquired during a marriage are considered to belong equally to both spouses.

Equitable distribution, on the other hand, views them as belonging to the individual spouse who earned them.

When it comes to divorce, no set rules for the division of property exist. Instead, the court aims to divide assets between both parties in a fair and equitable manner.

The two sides sit down, usually with attorneys, judges, or mediators, to determine the division of property. The ultimate goal is for both to maintain a standard of living similar to what they enjoyed during the marriage.

Related Reading: The Impact of Major Purchases on Divorce

Separate Versus Joint Property

Before getting down to the business of the division of property, it’s important to know that there are two kinds of property: separate property and joint property. Oregon treats both types of assets differently.

Separate /Premarital Property:

As you probably infer from the name, separate property belongs to one spouse or the other. Though usually something owned before marriage, this category also includes gifts or inheritance. The court can include separate property when dividing assets if fairness dictates, but in general, it remains with the owner.

In the case of premarital property, it also usually stays with the original owner. For example, if you bought a car and kept it registered in your name, it will likely remain yours. This gets cloudy in longer-term marriages or in cases where assets commingle. In longer marriages, lives become much more intertwined, and the line between separate and marital property blurs.

Joint /Marital Property:

Property acquired or earned during a marriage generally constitutes marital property.

Despite a name on a title, with equitable distribution, Oregon courts presume both spouses contributed to any assets acquired during the marriage, whether true or not. Property equally acquired is subsequently equally distributed in divorce, in a fair, equitable fashion.

Spouses can work out the division of property on their own. If both sides agree, the court will generally accept it, unless it skews drastically in favor of one party. Even once the courts get involved, you can make a case for ownership.

You can argue that the other spouse didn’t contribute as much to a certain acquisition. Or the two sides can bargain and haggle. For instance, perhaps you’re willing to cede possession of a car in exchange for the title to a boat.

Related Reading: Student Loan Debt And Divorce

What Factors Influence the Division of Property?

The reality of property division varies from case to case. Things often become tricky when it comes to determining what belongs to whom.

Equitable distribution doesn’t mean the court divides all assets in half.

The court attempts to divide the assets fairly. To accomplish this goal, they need a clear picture of who owns what individually and what belongs to the couple as a unit.

The court looks at many factors:

The number of properties.
If significant items, such as a house or other property, need to be sold, the court considers the associated costs and expenses.
This also includes things like taxes and fees.
Pensions and retirement plans.
Medical bills.
If only one spouse works, the court accounts for the other party’s role and contributions as a homemaker.

In many cases, the court subsequently distributes these items or assets in a fitting manner.

During the division of property, however, you can dispute this approach. You can argue your ex didn’t contribute equally to the acquisition, make a case for possession, or barter for ownership.

Once the assets and debts have been classified as either marital or separate property, a value or liability is assigned to each. The court then divvies them up between the two parties in the fairest, most egalitarian way possible.

Anticipated costs also figure into the division of property.

If you have children, the court accounts for their ongoing needs. This includes the ability to pay child support and provide for their care and well-being. For example, the custodial parent may receive the marital home for stability and continuity.

While a number of considerations factor into the process, one that doesn’t, is fault.

Oregon is a no-fault divorce state, so who caused the split doesn’t affect how assets are divided. Individual judges also have their own interpretations and applications of the laws and regulations. As a result, no two divorces ever play out identically.

Related Reading: How Long Does Divorce Take in Oregon?

Dealing With Major Assets, Like A House

Major assets can complicate the property division process, but there are multiple ways to approach this.

Houses offer a prime example.

For most people, a house is the biggest purchase they ever make and their most valuable possession. Because of this, they’re also usually the most significant piece of the puzzle in the divorce settlements.

In these situations, you have three common strategies:

You sell the home and split the earnings.
One spouse buys out the other and refinances in their name.
If there are children, the custodial parent continues to live in the home for a period. Most often, this lasts until the youngest child turns 18 or graduates from high school. At that time, they either buy out the other spouse or sell the house and split the proceeds.

Related Reading: Should You Sell Your Home During Divorce?
Related Reading: How Is Debt Divided?