Many people contemplating divorce have questions about the process. What little they know may come from stories relayed by friends, coworkers or family members. Others may even glean information from popular media, including television shows and books.
What people think they know about divorce might be outdated or might relate more to the laws in another state than in Hawaii. People need to know what to expect if they litigate. Even spouses hoping to settle divorce matters outside of court generally need to understand how the courts divide property. That way, they can identify unfair proposals that they should not accept.
How do the Hawaii family courts divide marital assets?
Hawaii is an equitable distribution state
Some states, including California, have a community property statute. The courts treat all of the assets acquired during marriage and any income earned during the marriage as shared marital or community property. In Hawaii, the state has an equitable distribution rule.
Unless the spouses signed a prenuptial agreement, their income earned during marriage and the property they accumulated while married is subject to division when they divorce. Instead of trying to split that property evenly, the goal is instead to arrange for a fair outcome.
Judges have to look carefully at the family circumstances to determine what is fair. Typically, they do not consider marital misconduct. Instead, they look at paid and unpaid contributions to the household, the length of the marriage and even the custody arrangements for any shared children. Factors including the health of the spouses and their earning potential, as well as the separate property that they do not have to divide, can also influence the process.
Judges have the authority to allocate both assets and debts to either spouse. They can order the liquidation of assets in some cases. Frequently, spouses who want a predictable property division outcome need to consider settling outside of court. In an uncontested divorce filing, spouses set their own terms and have control over the outcome. In a litigated divorce, a judge makes all of the major decisions.
Learning more about what influences the property division process can help people as they prepare for divorce. Spouses who want to retain certain property may need to look at proposing a settlement instead of leaving everything to the discretion of a judge.