Dividing property and debt in divorce is one of the most important and often most contentious parts of the process. In Utah, courts follow principles of equitable distribution, which means dividing marital property and debt fairly—but not always item-by-item. Understanding how Utah courts handle this process can help you feel more prepared and confident during a difficult time.
What Is “Marital Property” in Utah?
In Utah, courts distinguish between marital property and separate property:
- Marital property includes assets and debts acquired during the marriage, even if they’re in only one spouse’s name.
- Separate property includes items owned before the marriage or individually received as a gift or inheritance.
However, separate property can become marital property through a process called commingling, for example, if it’s deposited into a joint account or used for marital expenses.
How Utah Courts Divide Property: 50/50 Presumption
Utah courts start with the presumption that marital property and debt will be divided 50/50. This doesn’t mean every individual item is split in half, but rather that each spouse walks away with a roughly equal share of the overall marital estate—including both assets and debts.
However, there are exceptions. Courts may deviate from the 50/50 rule if there’s a clear and justified reason, such as:
- Dissipation of assets (e.g., one spouse spending large amounts of marital funds irresponsibly)
- Unique equity considerations (like premarital contributions, sacrifices, or inheritances that weren’t fully commingled)
Any deviation must be supported by specific valuations and clearly articulated reasons that can hold up on appeal.
Retirement Accounts and QDROs
Retirement accounts are generally considered marital property and subject to equal division, even if the account is only in one spouse’s name.
If, for example, one spouse has $75,000 in retirement savings and the other has $25,000, the court will typically issue one Qualified Domestic Relations Order (QDRO) to transfer $25,000 from the higher account to the lower one, resulting in $50,000 each. However, courts may offset this transfer if the spouse with less retirement receives another asset of equal value, such as a car or lump sum.
What About Debts?
Just like assets, debts are divided equitably, with a general presumption of 50/50. This can include:
- Mortgages
- Credit card balances
- Car loans
- Medical debt
- Student loans
Courts consider who benefited from the debt and whether it was incurred during the marriage. Debts accumulated for non-marital purposes, such as gambling or spending on a new relationship, can result in unequal responsibility.
Can Spouses Decide on Their Own?
Yes. Spouses can create a property settlement agreement, dividing property and debt by mutual consent. Courts typically approve these agreements as long as they appear fair and both parties entered into them knowingly and voluntarily.
Settling through negotiation or mediation often results in a faster, less stressful, and less expensive outcome.
Final Thoughts
Dividing property and debt in divorce isn’t just about who gets what, it’s about securing a fair foundation for your future. Utah courts presume a 50/50 division, but will make adjustments in cases of dissipation, inequity, or unique circumstances, as long as those adjustments are clearly supported by evidence and valuation.
Need help navigating your divorce? Contact Christensen Law today to schedule a consultation with one of our experienced Utah family law attorneys.
Call: (801) 303-5800
Disclaimer: This blog post provides general information about Utah divorce law and is not intended as legal advice. Every divorce case is unique, and you should consult with a qualified attorney to discuss your specific situation.