A more thorough explanation:

In a divorce case, all property owned by spouses is divided into two categories: marital property and separate property. Marital property is property acquired by spouses during their marriage, regardless of whose name is on the title. Separate property is property acquired before the marriage.

• If a couple buys a house together during their marriage, it is considered marital property.
• If one spouse inherits a house from their parents during the marriage, it is considered separate property.
• If one spouse owns a business before the marriage and the business increases in value during the marriage due to the efforts of both spouses, the increased value is considered marital property.

The examples illustrate how property is categorized as either marital or separate based on when it was acquired and how it was used during the marriage.

Most states use the equitable distribution approach, which divides all marital property fairly between spouses. The court considers factors such as the duration of the marriage, the value of the property, and each spouse's contribution to the property. Community property states, such as California and Texas, assume that both parties equally share all community property acquired during the marriage.

Separate property cannot be divided by courts, and a property division award cannot be modified unless exceptional circumstances exist.