Divisible property is any passive increase or decrease in the value of property from the date of separation to the date of distribution. A passive increase in an increase that occurs without the effort of a party, such as the decrease in value of a home due to market forces, or the gains on stock.
Active increases in value are not divisible as they are gained through post date of separation efforts of a party, two example of an active increase in value would be a renovation to a home or contributions to a retirement account made after the date of separation.
Here’s an excerpt from the statute:
Divisible property” means all real and personal property as set forth below:
a. All appreciation and diminution in value of marital property and divisible property of the parties occurring after the date of separation and prior to the date of distribution, except that appreciation or diminution in value which is the result of postseparation actions or activities of a spouse shall not be treated as divisible property.
b. All property, property rights, or any portion thereof received after the date of separation but before the date of distribution that was acquired as a result of the efforts of either spouse during the marriage and before the date of separation, including, but not limited to, commissions, bonuses, and contractual rights.
c. Passive income from marital property received after the date of separation, including, but not limited to, interest and dividends.
d. Increases and decreases in marital debt and financing charges and interest related to marital debt.