What is a Distributive Award? A Comprehensive Legal Overview

Definition & Meaning

A distributive award is a financial payment made to one spouse from the separate property of another, rather than from marital property. This payment can be made as a lump sum or in fixed amounts over time. Distributive awards are not considered spousal support and are intended to ensure fairness in the division of assets during a divorce. Courts may issue these awards to help balance the division of property, especially when dividing marital assets would be impractical or burdensome.

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Real-world examples

Here are a couple of examples of abatement:

(Hypothetical example) If one spouse owned a business prior to marriage and the court determines that the business's value should be compensated to the other spouse, a distributive award may be ordered. This could involve a payment from the business's profits or a lump sum from the owner's separate assets.

State-by-state differences

State Distributive Award Guidelines
California Courts may issue distributive awards to ensure equitable distribution of property.
Texas Distributive awards can be used to compensate for financial misconduct.
New York Courts often consider the length of the marriage and contributions to separate property.

This is not a complete list. State laws vary and users should consult local rules for specific guidance.

Comparison with related terms

Term Definition Key Differences
Distributive Award A payment from one spouse's separate property to another. Not considered spousal support and comes from separate property.
Marital Property Division The division of assets acquired during the marriage. Involves marital assets, not separate property.
Spousal Support Payments made to support a lower-earning spouse after separation. Ongoing payments, unlike lump sum or fixed amounts in distributive awards.

What to do if this term applies to you

If you believe a distributive award may apply to your situation, consider the following steps:

  • Gather documentation of all separate properties and assets.
  • Consult a legal professional to understand your rights and options.
  • Explore US Legal Forms for templates that can help you draft necessary legal documents.
  • Be prepared to demonstrate the need for a distributive award in court if required.

Quick facts

  • Type of payment: Lump sum or fixed amounts over time
  • Source of payment: Separate property
  • Not spousal support: Distinct from spousal support payments
  • Can be secured: May involve liens on property

Key takeaways

Frequently asked questions

A distributive award is a payment made from one spouse's separate property to another during divorce proceedings.