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Classification of Premarital Defined Contribution Plan
© 2003 National Legal Research Group, Inc.
MAINE: Murphy v. Murphy, 816 A.2d 814 (Me. 2003).
The husband's premarital retirement plan was entirely separate property. Separate funds did not become marital merely because they were placed briefly into a joint account, where it was understood that the funds would be used for a separate purpose, and the funds were withdrawn after a short period of time.
The husband had a retirement account from his 10 years of employment prior to the date of his marriage, which he had rolled over into a brokerage firm account when he left his employment in Massachusetts. It was valued at $115,000. The trial court classified the account as the husband's separate property. On appeal, this determination was found not to constitute clear error. No challenge was made by the wife that the account had been rolled over following employment in a job that terminated prior to the marriage. It had always been held in his name alone. The wife's name never appeared on the account, and no marital funds or effort had been applied to the account. The husband had stopped making contributions to it prior to the date of the marriage. In light of these facts and circumstances, the determination that it was nonmarital property was not erroneous. Moreover, any increase in the value of the retirement account was similarly nonmarital as such increases were due solely to market forces. Me. Rev. Stat. Ann. tit. 19-A, 953(2)(e)(1)(A).
During the marriage, the husband received an inheritance from the estate of his mother. Included within that property was a joint account he held with his mother containing approximately $43,000. Of that amount, the husband placed $30,000 into a joint account with the wife. It was understood by the parties that these funds were to be used for the expenses of his mother's estate. Although property acquired by one spouse during marriage is presumed to be marital property under 953(3), that presumption may be rebutted by showing that the property falls within one of the exclusions listed in that section, which includes property acquired by gift, bequest, or descent. This joint account was held in both of the parties' names for only a brief period of time, after which it was placed in the husband's name. The wife never accessed any of the funds in the account while it was in their joint names. Such joint deposits need not be automatically treated as marital property merely because they are held in the names of a husband and wife, especially when only so held for a short period of time. It was not error to classify these funds as the husband's separate property.
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