Generally, spouses in a divorce may divide their property as they see fit. This is typically done using a Marital Settlement Agreement, or “MSA”. An MSA is a contract agreement between the parties that divides their property and debts and resolves other issues in the case such as spousal support. Once the parties agree to the terms of the MSA, the court will adopt their agreement and make it the order of the court.
If the spouses cannot reach an agreement, the court will divide the parties’ property and debts equally. However, there are several exceptions to this rule such as in cases of “negative estate” for example, where the parties’ obligations exceed their assets.