How Indiana Divides Property in a Dissolution of Marriage (2026)

Indiana's property division rules are two of the most distinctive in the country — and both favor equality over separate property protection.

Rule 1 — The 50/50 Presumption (IC 31-15-7-5): Indiana courts PRESUME that equal division of the marital estate is just and reasonable. 50/50 is not just a possible outcome — it is the mandatory starting point. A party who wants more than half must present evidence to rebut the presumption.

Rule 2 — ALL Property in the Marital Pot: There is no "separate property" category in Indiana. The marital estate includes ALL property owned by either spouse at the time of dissolution — whether acquired before the marriage, received as a gift, or inherited. Pre-marital property and inheritances are not automatically excluded.

The 4 Rebuttal Factors

A party can argue for deviation from 50/50 by presenting evidence on one or more of these four statutory factors (IC 31-15-7-5):

Courts can (and do) deviate from 50/50 based on these factors — but the burden is on the party seeking deviation to present the evidence.

What Counts as "All Property"

The marital estate at the time of dissolution includes:

• All real property (home, rental property, land)
• All bank and savings accounts (including accounts opened before marriage)
• All investment accounts
• All retirement accounts — 401k, IRA, pension (including pre-marital balances)
• All vehicles
• Business interests
• Cash value life insurance
• Any gifts received by either spouse
• Any inheritances received by either spouse

Dividing Common Assets

The Marital Home

Options are the same as in other states:

1. One spouse keeps it — equity buyout; deed transfer; refinancing
2. Sell — split net proceeds
3. Deferred sale — one spouse occupies for a period (e.g., until children finish school)

For the equity buyout: establish a fair value (appraisal, Zillow + comparable sales, or agreed estimate). Set the refinancing deadline in the Settlement Agreement.

Recording: After refinancing, record a new deed at the county Recorder's office.

Retirement Accounts

• Employer plans (401k, 403b, pension): Require a Qualified Domestic Relations Order (QDRO) — drafted after the dissolution is final
• IRAs: Transfer incident to divorce — no QDRO required; direct transfer instruction

The Settlement Agreement should specify the division method: percentage (e.g., 50% of the balance as of the dissolution date) or dollar amount. For pre-marital retirement accounts, note the pre-marital balance if arguing for deviation.

Pre-Marital Retirement Accounts

If you contributed to a 401k for 20 years before the marriage and 5 years during, the entire account is in the marital pot. You may argue for deviation based on the pre-marital contribution (Factor 2), but the account is in the pot — not automatically excluded.

Inheritances and Gifts

Same analysis — in the pot, but the origin is a rebuttal factor. Document the inheritance clearly in the Settlement Agreement with the date received and any evidence of separate treatment (e.g., kept in a separate account, not comingled).

Maintenance — Very Limited in Indiana

Indiana does not have general alimony. "Maintenance" (the Indiana term) is only available in 3 specific situations:

1. Physical incapacity — a spouse cannot support themselves due to physical illness or disability
2. Mental incapacity — a spouse cannot support themselves due to mental illness
3. Rehabilitative maintenance — a dependent spouse needs education or training to enter the workforce (maximum 3 years; up to $12,000/year unless court finds otherwise)

If no statutory basis for maintenance exists, include a written waiver of maintenance in the Settlement Agreement.

Last reviewed: March 2026 | IC 31-15-7-5 (50/50 presumption) | ALL property in marital pot | Maintenance very limited — 3 specific grounds only

Last reviewed: March 2026 · Verify current fees and forms with your local court before filing.