Oregon is an equitable distribution state, and thus all marital property and assets are divided equitably. However, that does not necessarily mean assets are split 50/50.
Before any assets are divided, the parties to a divorce must determine what is marital property and what is separate property. Generally, most assets that have been accumulated during a marriage are considered to be marital property. However, there are exceptions to that rule, such as inheritance or gifts. The property will be awarded only to the spouse who owns it.
This general rule can change if the assets are intermingled during the marriage. Any financial misadventures on the part of either spouse, like unreasonable debts or unwise investments, will also be analyzed. The courts have jurisdiction to divvy up assets earned before marriage, no matter which spouse is the title owner.
When considering the equitable distribution of assets the courts examine how long the couple was married, what contributions each spouse made to the marital unit, the tax consequences, whether or not one spouse is caring for small children, any possible sources of future income, and how employable each of the partners in the marriage may be.
When it comes to debts, courts in Oregon divide debts the same way they divide assets, equitably and fairly, but not always 50/50. It is worth noting that a divorce decree means nothing to creditors, and if a debt is assigned to only one spouse, the other spouse must remove their name and obligation from the repayment. Any debt acquired by a spouse before marriage is solely theirs unless the other spouse was added to the account.
As for gifts and inheritances, if a spouse inherits something and it is not mingled into the family finances, there is a better chance of keeping it as an asset during an Oregon divorce. To protect an inheritance or gift, a pre or postnuptial agreement is worth considering as it states the asset exclusively belongs to the designated spouse.