Understanding Marital Property
In the process of a divorce, assets are broadly categorized into three types: marital property, separate property, and a combination of both.
» Marital Property: This category encompasses assets acquired by the couple during the marriage. These assets are subject to division during a divorce.
» Separate Property: Separate property includes assets owned by either spouse before the marriage, certain gifts or inheritances received during the marriage, or property specifically designated as separate in a prenuptial or postnuptial agreement.
» Combination: Sometimes, separate property may become marital property due to the commingling of funds. This occurs when separate and marital assets are mixed, making it challenging to distinguish their origins.
Two key factors heavily influence the classification of marital property during a divorce:
» State Laws: Each state has its laws that define marital property and the guidelines for its division. It is crucial to familiarize yourself with your state’s specific regulations.
» Treatment Of Property During Marriage: How you and your spouse manage property during your marriage plays a significant role in its classification during divorce proceedings. This includes how you acquire, manage, and use assets together.