New Mexico Property Division | NM Settling Disputes for Marital and Non-Marital Divorce Assets and Debts

Once a couple gets divorced, all assets and debt from the marriage must be sorted out by the courts. Among the many considerations that must be considered, a universal one is property division, specifically New Mexico property division.

No divorcing spouse should go to court without retaining a licensed attorney who works in Family Law cases. Property division laws can be complex, vary from state to state and lawyers have the proper training/experience to tell the judge what a divorcing spouse wants and/or needs from the property division.

Property Division Divorce Laws in New Mexico

The purpose of New Mexico property division laws is to make sure that New Mexico marital property is allocated equally to each spouse as New Mexico divorce property, generally in a 50-50 split. If a 50-50 division would not be equitable, the courts may choose to divide the property in a more equitable fashion under New Mexico case law.

New Mexico is a community property state. This means that with regard to New Mexico divorce assets, each spouse has a ½ vested interest in the property of the other spouse that should be considered in dividing New Mexico divorce assets or New Mexico divorce property. The only property that does not come into the court's distribution is that which is listed as an exception under New Mexico Statute §40-3-8(A).

What is considered Marital and Non-Marital Property?

New Mexico marital property or “community property” means any property acquired by either or both spouses during the marriage that is not separate property.

Non-marital property or “separate property” is property listed as separate property under New Mexico Statute §40-3-8(A). Some examples of non-marital property are:

Property designated as separate by a judgment or decree of any court having jurisdiction
Property acquired by either spouse before marriage or after entry of a decree of dissolution of marriage
Property acquired by either spouse by gift, bequest, devise or descent
Any property classified as separate under an agreement between the spouses

New Mexico law also has a designation of property called “quasi-community property.” This is for property that was acquired by either spouse while domiciled elsewhere that would have been community property if that spouse had been domiciled in New Mexico when it was acquired.

If both parties are domiciliaries of New Mexico at the time of the divorce, the quasi-community property is deemed marital/community property for the purposes of property division.

Dividing Assets and Debt

After the court decides which property is available for distribution, the next step is property valuation. The last step is either a 50-50 division or property or the most equitable division under New Mexico case law.

Judges decide how a marriage's assets should be divided based on case law. Here is a list of the most common property items and the most common allocation scheme used.

Cash: Divided equally among the spouses.
- Example 1: A joint savings account has $5,000 and each spouse contributed $2,500 to the amount. The court would most likely award $2,500 to each spouse.
- Example 2: A joint savings account has $5,000. One spouse contributed $4,000 and the other contributed $1,000. The amount will be divided equally or based on the court's determination that one spouse would not be treated fairly under a 50-50 split.
Retirement Plans: The amount accrued during the marriage is divided equally.
- Example 1: A spouse got benefits in a retirement plan after working for 25 years and was married for 20 of those years. The ex-spouse would most likely be entitled to 50% of the income acquired during the 20 year marriage.
- Example 2: A spouse has an unvested retirement plan. No division takes place until the plan is payable to the spouse who has it.
Vehicles: Divided based on the values as determined by the court. May be sold or given to a spouse outright.
- Example 1: A car is owned by a spouse. The car may be sold with the proceeds to be split 50-50, divided in some other way or the car may just be given to a spouse.
- Example 2: A car has a shared title. The car may be sold with the proceeds in a 50-50 split or some other distribution if a 50-50 split would be unfair.
Insurance: The portion paid for or acquired during the marriage is divided equally between the spouses.
- Example 1: One spouse has covered the other under employer provided health insurance. The other spouse is in poor health and couldn't afford alternate health care coverage. The court may order the first spouse to continue covering that spouse for a set time and/or award money to the ailing spouse to get new coverage.
- Example 2: One spouse has a life insurance policy where the ex-spouse is to get survivor benefits. The spouse will be entitled to half of the portion of benefits that accrued during the marriage.

Settling Disputes in a Divorce Case with Property and Asset Division

If a spouse is not complying with the order or you are unhappy with some aspect of the property division, you may go back to the trial court and seek enforcement or modification of the order. The court will then decide how to proceed.

Generally, the trial court has great latitude in making decisions on property division and appellate courts will not change the order unless there was an abuse of discretion in the trial court.

Help From a New Mexico Property Divorce Lawyer

Retaining a New Mexico property divorce lawyer is key to getting the fairest and most equitable result in the property division phase of a divorce. The lawyer can provide professional guidance, keep you informed of likely outcomes and help you present the best arguments and presentation to the trial judge handling the divorce.

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