We introduce isospin dependence in the cluster recognition algorithms used in the Quantum Molecular Dynamics model to describe fragment formation in heavy ion collisions. This change reduces the yields of emitted nucleons and enhances the yields of fragments, especially heavier fragments. The enhancement of neutron-rich lighter fragments mainly occurs at mid-rapidity.Consequently, isospin dependent observables, such as isotope distributions, yield ratios of n/p, t/ 3 He, and isoscaling parameters are affected. We also investigate how equilibration in heavy ion collisions is affected by this change.