Legal Definitions - property division

Definition: Property division, also known as property settlement, refers to the process of dividing the assets and debts between two parties in a divorce case.

Examples:

• John and Jane are getting a divorce. As part of the divorce proceedings, the court will determine how to divide their shared property, such as their house, cars, and bank accounts.
• Tom and Sarah have decided to create a property settlement agreement outside of court. They have agreed to split their assets and debts equally, and have included this agreement in their divorce decree.

These examples illustrate how property division works in a divorce case. When two parties decide to end their marriage, they must determine how to divide their shared property. This can be done through a court judgment or a private agreement, and includes both assets and debts.