When spouses are unable to reach an agreement on their own concerning the division of their property, they will need to go through the equitable distribution process conducted by the court.

The process of court-conducted equitable distribution involves three steps, including:

• Identification – The first step for the court is to determine which property is marital and which is separate. Separate property includes property owned prior to marriage, inherited, as well as gifts. However, any separate property that was used to purchase jointly held real estate may be considered marital property.

• Valuation – Next, the court will assign a value to each item of the marital property. Typically, the court may consider evidence of the amount a willing buyer would pay to a willing seller—known as fair market value. Determining the value of the marital property often involves the use of appraisers and other experts.

• Distribution – Finally, the court will equitably distribute the marital property. According to the Equitable Distribution Act, the division of the assets and debts is to be equal, unless the court decides that such distribution would be inequitable. All decisions regarding the division of the marital property are final, and it can only be appealed if the court abused its sound discretion during the distribution process.