Non-Marital Property

There are two types of property that the court looks at when a couple is divorcing: marital property and non-marital property. Marital property is any property that is acquired by you or your spouse during the course of your marriage. This type of property is subject to equitable distribution or community property laws, depending on the state.

Non-marital property is any property that is owned by you or your spouse prior to the marriage. In order for the property to remain separate from marital property, it must stay in your name. Once your spouse’s name is on the property, it is considered marital property.

Say you came into the marriage with a bank account containing $20,000. If both you and your spouse regularly deposit and withdraw money from the account, it ceases being non-marital property and becomes community property.

Inherited property or gifts from a third party are typically considered non-marital, if kept separate. If an asset was brought into the marriage and increases in value due to action or work by the other spouse, the increase in value may be viewed as a marital asset.

Items typically considered marital property includes cash, real estate, vehicles, cash value of life insurance, savings accounts, stocks, and bonds. Retirement accounts, 401Ks, and pension plans are also considered community property.

Most states have equitable distribution laws. In these states, the court looks at several factors such as the length of the marriage, the earning power of each spouse, and the contribution to acquiring the assets to determine how to divide the marital property. While the property may be split anywhere from zero to 100 percent, 40 to 60 percent per partner is typical.

In states that have community property laws, marital property is divided 50/50 between each spouse.

Marital property is not the only thing that is split up during a divorce—the court may distribute the marital debt between both parties. Marital debt includes the home mortgage, school loans, vehicle loans, home improvement loans, and unpaid bills.

It is important to keep track of your marital and non-marital property during your divorce proceedings. Contact an experienced divorce lawyer today to assist with your case.