What is a marital deduction?

A marital deduction is an allowance made by law to spouses who are dividing property during a divorce. In Hawaii, this deduction is provided by the Revised Uniform Reciprocal Enforcement of Support Act (RURESA). The marital deduction is designed to encourage couples who are separating to reach an agreement out of court and to minimize the cost of divorce. The marital deduction is calculated by determining how much of the couple’s assets each spouse owns. This is done by noting the value of any marital assets when the spouses separate. The deductible amount is equal to half of the total value of the couple’s assets, or one-third if there are children involved. This amount is then divided between the spouses. The marital deduction is used to help provide financial security for both parties after the divorce is finalized. It can be used to provide a spouse with additional cash, to help with expenses, or to cover debts that were incurred during the marriage. It is important to note that in Hawaii, the marital deduction is not automatically granted. Spouses must agree to it in their divorce settlement. They must also provide proof that all of the marital assets were taken into account before the divorce was finalized. Furthermore, the marital deduction only applies to assets that were owned by both spouses at the time of the separation. Any assets that were acquired afterwards are not eligible for deduction.

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