Gone are the standard days when marrying meant immediately commingling all loan in a typical savings account and putting both names collectively on every property title.
Many social modifications affect why spouses may want to retain control of their own loan and other properties after marriage:
People are older when they marry and live longer typically, and are utilized to making their own spending, conserving and financial investment decisions guided by their own worths.
Marital property is that which is acquired by partners, alone or together, during the marital relationship. Whether marital property is owned singly or collectively, each spouse is deemed to have an interest in the property. In a divorce, the court divides marital property equitably, considering all relevant situations.
Nonmarital property is that which is acquired by either partner before marital relationship; throughout or after the marital relationship by “present, bequest, design or inheritance made by a 3rd party to one however not to the other partner”; or after the date the court values the property for divorce purposes. Property received in exchange for these kinds of property or the passive increase in worth of these types of property is also considered nonmarital in nature. Finally, property perhaps classified as nonmarital pursuant to an antenuptial contract, likewise known as a prenuptial contract, where the parties agree on how property will be classified, owned, valued or gotten rid of in the future.
Marital Property Presumption
If a nonmarital possession has altered its nature during the course of the marital relationship, the spouse making the nonmarital claim should trace the original nonmarital asset to an asset existing at the time of the divorce. For example, a nonmarital gift of money to one spouse alone may have been used to buy stocks, so the link between the cash and the investment is easily traceable and the financial investment handles the nonmarital nature of the original gift of cash.
Commingling marital property with nonmarital property can make it hard to figure out the true nature of the property. A spouse trying to show that part of commingled property is nonmarital might need to employ an accountant to attempt to reconstruct the history of deals that created the blended assets. If a hubby or other half wishes to keep nonmarital property designated as such, it is an excellent concept to keep it in a separate account during the marital relationship.