Dissolution of Marriage in Montana: A few things to know about property division

Dissolution (divorce) proceedings in Montana are multifaceted, and understanding how property division works is paramount for those facing the end of a marriage. In this article, we’ll delve into the concept of “equitable distribution” in Montana and clarify how even “separate property” is subject to this principle. 

Equitable Distribution in Montana: Defining the Term

When dissolving a marriage, Montana adheres to the principle of equitable distribution when it comes to the division of marital property. Unlike community property states where assets are typically divided evenly, equitable distribution aims for a fair and just allocation of assets based on a range of factors. The objective is to ensure that each spouse receives a portion of the marital property that reflects their contributions and needs.

Even “Separate Property” Is Subject to Equitable Division: The “In re Funk” Influence

It’s essential to clarify that in Montana, even what might be considered “separate property” is subject to equitable distribution. This includes assets acquired before the marriage, inheritances received by one spouse, and gifts given specifically to one spouse. The seminal Montana Supreme Court case “In re Funk” established the principle that even separate property can be divided equitably.

Factors Considered by the Judge: Guided by “In re Funk”

When making decisions about property division, Montana judges rely on the “In re Funk” factors as their guiding framework. While these factors aren’t exhaustive, they play a significant role in shaping decisions. Here are the key considerations judges take into account:

• Duration of the Marriage: The length of the marriage is a pivotal factor. Longer marriages often lead to a more balanced distribution of assets, while shorter marriages may involve different considerations.
• Financial Contributions: The court evaluates each spouse’s financial contributions to the marriage, including income, assets brought into the marriage, and financial responsibilities assumed during the union.
• Non-Financial Contributions: Contributions made by each spouse in terms of homemaking, childcare, and other non-financial aspects are also considered. These non-economic contributions are seen as equally valuable to the financial contributions.
• Future Financial Prospects: The judge may assess each spouse’s earning capacity, employability, and financial prospects post-dissolution. This evaluation can influence asset distribution, especially if one spouse faces financial disadvantages.
• Age and Health: The age and health of each spouse can play a role in the division of assets. Health issues or proximity to retirement age may affect how assets are allocated.
• Debts and Liabilities: The court takes into account any marital debts or liabilities when determining property division. This can encompass mortgages, loans, and credit card debt.
• Fault in the Marriage: Montana operates as a no-fault state, meaning that marital misconduct is not a consideration in asset division. However, in exceptional cases involving financial misconduct, the court may consider such behavior.

In Montana, equitable distribution is the guiding principle in property division during dissolution proceedings. It’s crucial to understand that this concept applies to both marital and separate property, thanks to the “In re Funk” precedent. The court’s goal is to achieve a fair and just distribution of assets based on the specific circumstances of each case.

To navigate the complexities of marriage dissolution and property division effectively, it’s highly advisable to seek legal counsel from an experienced Montana family law attorney. This article offers an overview of equitable distribution, but it should not be construed as legal advice. For personalized guidance tailored to your unique situation, consult with a qualified attorney who can provide expert legal counsel and advocate for your interests throughout the process.