Divorce Settlement Calculator

Community Property vs Equitable Distribution

Nine states follow community property rules: California, Texas, Arizona, Nevada, Washington, Idaho, Louisiana, New Mexico, and Wisconsin. In these states the default is a 50/50 split of all marital property. The remaining 41 states use equitable distribution, where courts divide property fairly based on circumstances — which often results in an unequal split.

What Gets Divided

Marital property includes income earned during the marriage, the family home, retirement account contributions made during the marriage, investments purchased during the marriage, and joint debt. Separate property — assets owned before marriage, inheritances, gifts — generally stays with the original owner unless it was commingled with marital funds.

Tax Consequences of Divorce

A $200,000 retirement account and a $200,000 taxable brokerage account are not the same thing after taxes. Retirement distributions are taxed as ordinary income. Brokerage accounts may have embedded capital gains. The family home has a $250,000 per-person capital gains exclusion after divorce, down from $500,000 for married couples. Getting a CPA involved before finalizing the settlement can save tens of thousands.

Frequently Asked Questions