Iowa is an equitable distribution state where marital fault is not a factor in dividing debts and assets.
Iowa follows an equitable distribution model for dividing marital property following a divorce. This doesn’t mean assets are split 50/50 but rather in a way that is fair to both parties. It is common, of course, that a 50/50 split will be equitable. Courts consider factors like the length of the marriage, each spouse’s contributions, and their economic circumstances.
Deciding what qualifies as marital property versus separate property is where the action in a divorce case happens. Assets acquired during the marriage are typically subject to division, while inheritances or gifts to one spouse may remain separate. Property brought into the marriage—like portions of a personal retirement account—are usually excluded from the asset division.
In high-net-worth divorces, property division can get especially dicey when the parties have put assets in trusts or corporate entities. Also, the assets in these situations can be very hard to value. For example, experts may be necessary to figure out how much a business or shares in a privately held company are worth.
