Separate or Marital Property?
A few practical examples illustrate the logic behind designating property separate or marital.
Suppose, right after her wedding to Rufus, Rhonda’s great-aunt leaves her a Tiffany’s jade necklace appraised at $5,000. That inheritance is Rhonda’s separate property. By the same logic, that big-screen television set Rufus got from his brother as a birthday gift belongs to Rufus and is his separate property.
However, when Rufus deposits a $10,000 gift from his folks in his and Rhonda’s joint checking account, that money becomes community property and is marital. And in a community property state, if Rufus buys a motorcycle for himself with money from his income, that motorcycle is community property because he bought it with money earned during he marriage.
Rhonda’s part-time travel agency, which she started before she married Rufus, may become part community property because Rufus can demonstrate that during their marriage he added value to the business.
Useful Online Tools
Resources & Tools
DATE OF SEPARATION – Depending upon the laws of the state of residence, the Date of Separation – called the DOS – has a profound impact on the eventual division and distribution of property and debt, including credit, pension benefits, and other marital assets. As of the DOS, the separated spouses are now in limbo legally and financially and remain so until the actual Date of Divorce. A great deal of money may be at stake. For example, one spouse may share responsibility for any debts incurred by the other; the value of a retirement plan or other marital asset, such as residential property, may fluctuate, often by thousands of dollars.
Easily Connect With a Lawyer or Mediator
Have Divorce Professionals from Your Area Contact You!
Divorce & Money: How to Make the Best Financial Decisions
What Happens to the Marital Home Upon Divorce
Established in 1996
© 1996 - 2021 MH Sub I, LLC dba Divorce Source. All Rights Reserved.