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Indiana Law - May Separate Property Be Divided? The general rule in most states is that separate property remains in the owner's possession. However, in Indiana, the court is allowed to allocate any separate property to the other party in the property division. The separate nature of the property is only one factor the court takes into consideration in deciding how to allocate the property. Section 31-1-11.5-11(c)(2). Cases: Haynes (1992) 157 Bankr 646.
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