When a married couple decides to go their separate ways, one of the most crucial aspects of divorce proceedings is the division of their assets. When you get married, you combine your assets, but in divorce, you have to separate those again. By the time you divorce, you likely have more assets to split than you began the marriage with, and certain assets may have changed in status. Before you start your divorce, you should become familiar with the difference between marital and non-marital assets.
The divorce attorneys behind Untying the Knot’s online infrastructure can assist in understanding your circumstances. For a faster and simpler divorce process, consider our online divorce services.
Importance of Marital vs. Non-Marital Property
The legal designation of property as either marital or non-marital carries significant implications during divorce proceedings. It can dramatically affect how assets are divided and subsequently impact each party’s financial stability post-divorce. To assure fair distribution, divorcing couples must understand these distinctions and seek appropriate legal guidance.
Marital Property
Marital property refers to any assets or debts acquired by either spouse during their marriage. These can include:
- Houses
- Cars
- Bank accounts
- Investments
- Retirement benefits
- Real estate
- Vehicles
- Furniture
- Savings
- Debts
In most states, any property acquired by a married couple is presumed to be marital property. Even if one spouse’s name is the only one on the title of an asset, it is still considered marital property if it was acquired during the marriage. There are some exceptions to this rule, however, they are case-specific and very uncommon.
Non-Marital Property
On the other hand, non-marital property is any asset or debt that was acquired before the marriage, after the filing of divorce, or received as a gift or inheritance during the marriage to one of the individuals. Non-marital property can also include assets that were exchanged for premarital assets or were specifically designated as non-marital in a prenuptial agreement.
The key difference between marital and non-marital property is that the latter belongs solely to one spouse and is not subject to division during divorce proceedings.
Can Property Change from One Category to Another?
In some cases, the property can change categories. For example, if a couple purchases a home together before marriage and then adds the other spouse’s name on the title, it becomes marital property.
Similarly, if a spouse inherits money during the marriage but uses it to purchase a marital asset, such as a house, it becomes marital property, even though the inheritance was not.
However, changing the designation of an asset from non-marital to marital can be challenging and often requires proof that the intention was for the asset to be jointly owned by both spouses or singularly owned by one spouse.
Exceptions
Some assets are always considered marital or non-marital, regardless of when or how they were acquired. For example, any property owned before the marriage will always be considered non-marital unless significant efforts were made to use marital funds to improve it.
Similarly, assets that are solely in one spouse’s name but used for the benefit of both parties during the marriage, such as a family vacation home, may also be considered marital property.
Check Out the Online Divorce Services at Untying the Knot For Help
Understanding the distinction between marital and non-marital property is essential in divorce proceedings. Marital property can be any assets or debts acquired during the marriage, while non-marital property belongs solely to one spouse and was acquired before or during the marriage through a gift or inheritance to one of the individuals.
While certain exceptions exist, couples must understand how the designation of their assets can impact the division of property during divorce. Seeking legal advice in such matters can help ensure a fair and equitable distribution of assets. Utilizing an online divorce service can streamline the process and make it easier to use. Check out Untying the Knot´s online services for help.