Asset Division
Ensuring Fair Asset Division in Divorce
Dividing property during a divorce can be one of the most complex and contentious parts of the process. At Lee Ohlmann Law LLC, we are dedicated to helping you navigate Oregon’s equitable distribution laws to ensure that you receive a fair share of marital assets.
In Oregon, property division follows the principle of equitable distribution, meaning that assets are divided in a manner deemed fair, though not always equally. Marital property can include real estate, retirement accounts, investments, business interests, and personal possessions acquired during the marriage. Our firm’s goal is to protect your financial future by advocating for a fair division of these assets.
Whether you are able to negotiate a settlement outside of court or need to resolve property division through litigation, our firm will stand by your side every step of the way. We will work to identify all marital assets, accurately value them, and negotiate a division that reflects your interests.
Property Division FAQ's
Navigating family law can be complex and overwhelming. Here, we answer some of the most common questions to help you understand your options and what to expect during this process. Every family's needs are different, for advice on your unique situation reach out to our team!
What is the difference between equitable distribution and equal division of property?
In Oregon, property division follows the principle of equitable distribution, which means the court divides property in a way that is fair, but not necessarily equal. Factors such as the length of the marriage, contributions of each spouse, and future earning potential are considered when determining how assets are split.
What types of property are subject to division in a divorce?
Marital property includes any assets or debts acquired during the marriage, such as real estate, bank accounts, retirement funds, vehicles, and even business interests. Separate property, which includes assets owned prior to the marriage or received as gifts or inheritance, may not be divided unless it has been commingled with marital assets.
How is the value of marital property determined?
The value of marital assets is typically assessed through appraisals, financial records, and expert valuations, especially for more complex assets like businesses or investment accounts. Both parties may need to agree on the valuation, or the court may step in if there is a dispute.
Is Oregon a community property state?
No. Oregon is an equitable-distribution state, not a community property state. The court divides property in a manner it considers “just and proper,” which does not necessarily mean a 50/50 split.
What does "just and proper" mean in Oregon?
In Oregon family law, the phrase “just and proper” often refers to how property is divided in a divorce. Rather than splitting property equally between the two parties, the court divides it in a manner that is just and proper under all of the circumstances. In many divorces, this results in a roughly equal division. In others, fairness requires a different outcome.
Can spouses negotiate their own property division?
Yes. Oregon spouses may negotiate and agree on how to divide their property and debts rather than asking a judge to decide. Their agreement should be clearly documented and incorporated into a stipulated divorce judgment. The court must still review and approve the judgment before the division becomes enforceable as part of the divorce.
Can a judge reject our property settlement?
Yes, but Oregon judges generally respect property settlements reached voluntarily by both spouses. A judge may reject or require changes if the agreement violates law or public policy, or resulted from fraud, coercion, or incomplete financial disclosure.
Can property division be modified after divorce?
Property division is generally intended to provide finality. Once marital assets have been divided under a final judgment, reopening those issues is uncommon.
How is property divided in an Oregon divorce?
Oregon follows a system known as equitable distribution. This does not necessarily mean property is divided exactly 50/50. Instead, Oregon courts divide marital assets and debts in a manner that is just and proper under all of the circumstances.
In many cases, an approximately equal division is appropriate. In others, a different allocation may better reflect the parties' financial circumstances, the source of particular assets, or other equitable considerations. Every case depends on its own facts.
Are retirement accounts divided in divorce?
If they are designated as marital property, they will be divided. Retirement assets may include:
- 401(k) plans
- IRAs
- Pensions
- Deferred compensation plans
- Government retirement systems
Depending on the account, division may require a specialized court order known as a Qualified Domestic Relations Order (QDRO) or similar legal instrument. Improperly transferring retirement assets can result in significant tax consequences. Accordingly, the retirement division should be handled carefully and with the help of experts who specialize in drafting QDROs.
What happens to a business in divorce?
Business ownership often creates some of the most complex property division issues. The court may need to determine:
- Whether the business is marital property.
- The value of the business.
- Whether appreciation occurred during the marriage.
- Whether one spouse should retain ownership while compensating the other.
Business valuation frequently requires accountants, valuation experts, or forensic financial professionals. Every closely held business presents unique legal and financial considerations.
How are debts divided in divorce?
In an Oregon divorce, debts are divided as part of the overall “just and proper” distribution of the spouses’ property and financial obligations. The court may consider when and why a debt was incurred, who benefited from it, and each spouse’s ability to pay.
What happens to cryptocurrency in divorce?
Cryptocurrency is treated like any other marital property or financial asset and divided according to Oregon’s just and proper division laws.
Can I keep property I owned before marriage?
Many people assume that anything owned before marriage automatically remains separate property. The answer is more nuanced.
Property owned before the marriage may remain separate under some circumstances, but Oregon courts also consider whether the property became intertwined with the marital partnership. For example, issues may arise when:
- Marital funds were used to improve separately owned real estate.
- Both spouses contributed to increasing the value of an asset.
- Separate funds became commingled with marital assets.
- One spouse actively managed or developed property that originally belonged to the other.
These situations often require a detailed factual and legal analysis.
What professionals are typically involved in a high-asset divorce?
In high-asset divorces, attorneys, forensic accountants, appraisers, vocational experts, financial advisors, and tax professionals may be needed to assist with valuing and dividing a complex estate.
Can a divorce be kept confidential if we have substantial assets?
A high-asset divorce can be kept confidential by managing privacy risks and using legal protections. Although court proceedings are publicly accessible, you can reduce public disclosure by using private mediation, requesting sealed court documents, drafting confidentiality agreements, and safeguarding digital communication.
How is investment property divided in a divorce?
In Oregon, investment property is often divided according to the “just and proper” standard, meaning that marital property will be divided in a manner the court considers fair.
What happens to rental properties during divorce?
The court will divide marital rental properties equitably according to Oregon’s “just and proper” standard. The court may consider who managed the property, whether either spouse contributed labor or funds, the income it generates, associated debt, and whether assigning it to one spouse produces a fair overall distribution.
How are vacation homes divided in a divorce?
In Oregon, a vacation home is divided under the same “just and proper” standard as other real estate. A court may consider when and how it was acquired, each spouse’s financial and nonfinancial contributions, outstanding debt, and how the property fits within the overall division of assets.
Can spouses co-own investment property after divorce?
Yes, former spouses can continue co-owning investment property after divorce. This requires a clear agreement between parties that is court-approved.
What happens to real estate held in an LLC during divorce?
In Oregon, real estate held in an LLC is treated as a financial asset subject to an equitable division by a court.
Are pensions divided during divorce?
Pensions are viewed the same as any other asset in Oregon, and are subject to the state’s equitable distribution standard. Pensions may be divided by the court through a Qualified Domestic Relations Order (QDRO), which will instruct the plan administrator to pay a designated share directly to the non-employee ex-spouse.
How are 401(k)s divided during divorce?
In Oregon, 401(k) accounts are divided through equitable distribution, a Qualified Domestic Relations Order (QDRO), and separate versus marital property rules.
A QDRO is typically necessary when dividing retirement plans such as 401(k)s. This order will tell the retirement plan’s administrator to transfer a specific portion of the account to the former spouse.
Money contributed to the account before the marriage is often considered separate property, and when accounts contain both marital and premarital contributions, courts typically only divide the marital portion.
What is a QDRO? Do I need a QDRO?
A Qualified Domestic Relations Order, or a "QDRO", is a special court order used during a divorce to split retirement accounts, like 401(k)s and pensions. In Oregon, you need a QDRO if your divorce judgment awards you a portion of your ex-spouse's employer-sponsored retirement plan.
Can dividing retirement accounts trigger taxes in a divorce?
Generally, dividing retirement accounts requires a QDRO (Qualified Domestic Relations Order). Transferring funds from a 401(k) or pension through a QDRO will generally not trigger additional taxes or early withdrawal penalties.
What happens to military retirement benefits in a divorce?
In Oregon, military retirement benefits are generally treated as marital property and divided according to the Uniformed Services Former Spouses’ Protection Act.
Is an inheritance marital property in Oregon?
An inheritance is not typically considered a marital asset. According to Oregon Revised Statute 107.105, gifts, such as inheritances, received by one spouse during marriage are excluded from the equal contribution presumption if separately held.
What happens to family trusts during divorce?
The court will examine the trust document and determine what interest either spouse actually possesses. Relevant considerations include whether the spouse is a settlor, trustee or beneficiary; whether distributions are mandatory or discretionary; and whether the spouse can withdraw, redirect or control the assets. The trust’s underlying property may belong to the trust rather than directly to either spouse, but a spouse’s enforceable beneficial interest or distributions may still affect the divorce.
Can irrevocable trusts be divided?
Usually, a court cannot simply divide property owned by a valid irrevocable trust created by someone other than the spouses. The beneficiary generally does not own the trust’s individual assets. However, a vested right to receive money, a mandatory distribution, or a trust funded with marital property may be examined. Present or future distributions can also sometimes be reached to satisfy child or spousal-support obligations, even if the trust contains a spendthrift provision.
Are revocable trusts considered marital property?
In an Oregon divorce, assets held in a revocable trust are considered marital property if they were acquired during the marriage. Oregon courts look past the "trust" label to evaluate the origin of the underlying assets. Because a revocable trust can be amended or canceled at any time, the person who created it retains complete control, meaning the law views those assets as personal wealth subject to division.
What happens to inherited real estate in a divorce?
Inherited real estate may remain with the spouse who inherited it, particularly if it stayed separately titled. The issue becomes more complicated if the other spouse was added to the deed, marital funds paid the mortgage, or the couple made substantial improvements to the property. Every inheritance and trust is different. An attorney should review the trust documents, account records, deeds, and history of how the property was used before determining how it may be treated in an Oregon divorce.
What if my spouse is hiding assets?
Oregon courts mandate full financial disclosure in all divorce cases, and hiding or lying about assets is a serious violation of this rule. Courts may impose financial penalties, contempt findings, or even jail time if assets are concealed. If a hidden asset is revealed after judgment, the court may reopen the case.
How do courts discover hidden assets?
Courts and attorneys may uncover hidden assets through formal legal discovery tools, including subpoenas and forensic accounting.
What are common ways spouses hide money during a divorce?
Common methods include transferring money to friends or relatives, delaying bonuses or business income, underreporting cash earnings, overpaying taxes, purchasing valuable items, creating false debts, or moving funds into undisclosed accounts. Unusual withdrawals, transfers, or changes in spending may warrant closer review.
Can cryptocurrency be hidden during divorce?
Cryptocurrency can be difficult to locate, but it is not exempt from disclosure or division. Attorneys and forensic accountants may examine bank transfers, tax records, exchange accounts, digital wallets, transaction histories, and electronic devices to trace cryptocurrency purchases and holdings.
Can offshore accounts affect divorce?
Yes. Money held outside the United States is still considered in an Oregon divorce. A spouse must disclose all assets, including foreign bank accounts, overseas investments, and international business entities.
When should I hire a forensic accountant for my divorce?
A forensic accountant may be useful when a spouse owns a business, is self-employed, controls complex investments, receives substantial cash income, has cryptocurrency or offshore accounts, or appears to be moving or hiding assets. The accountant can analyze records, trace funds, value business interests, and identify financial inconsistencies.
What is financial tracing?
Financial tracing is the process of following money from its original source through accounts, purchases, transfers, and investments. It may be used to determine whether property is inherited or marital, locate missing funds, or identify how money was spent or transferred.
Can a divorce settlement be reopened if hidden assets are discovered?
Yes. The court will reopen the case if there are substantial assets found, but you must provide clear proof of fraud or deception.


