Understanding Asset Division
How marital assets are divided depends on whether you live in a community property state or an equitable distribution state. Community property states (AZ, CA, ID, LA, NV, NM, TX, WA, WI) divide all marital assets and debts 50/50. Equitable distribution states (the other 41 plus D.C.) divide assets 'fairly' based on factors like income, marriage duration, and each spouse's contributions.
Not all assets are created equal for division purposes. A $100,000 retirement account is worth less than $100,000 in home equity because retirement funds will be taxed upon withdrawal. Similarly, stock options may have vesting restrictions that affect their current value. Work with a financial advisor to understand the after-tax value of each asset class before agreeing to a division.