All property acquired before marriage is considered separate property and is held only by that original owner. However, one of the spouses may transfer ownership of his or her separate property to the other spouse (gift) or to the property of the community (one of the spouses becoming the holder of the bank account). Spouses may also combine their separated property with common property, for example by paying pre-marriage funds into community property funds. As a general rule, you can assume that all the money you earn, any debt you incur, or any item you buy during a marriage will belong to both spouses if you are in a state belonging to the community. However, there are certain situations in which a couple may be exempted from a community property law. Community property law does not apply to the following situations: Before marriage, the couple may conclude an agreement specifying how matrimonial property is to be divided upon divorce. Under the common law, if a member of a married couple acquires separate property during the marriage, the property belongs to that person alone. The only time this is not the case is when the property is listed under the names of both spouses. This is largely the result of the Uniform Matrimonial Property Act of 1983. This law defined the ownership of property in a marriage and described how that property would be separated in the event of divorce. There is no “common-law divorce.” In states that recognize common-law marriage, these couples divorce, as do people who have been officially married.
Keep in mind that couples who separate can divide their property as they wish if they reach a compromise and cannot involve the court. Otherwise, the state ownership system (community ownership or equitable distribution) determines the distribution of assets and debts. As for married couples, there are two types of property: matrimonial and separated. In general, matrimonial property is everything that the partner earned or acquired during the marriage. Separated property, on the other hand, belongs to only one spouse. While the rules vary from state to state, separate assets typically include: Whether you`re seeking an out-of-court divorce and managing the process with online models, or expecting a fight from your spouse in court, it`s important to have a good understanding of marital property and the things that really belong to you. Many people who go through the divorce process are surprised that the things they thought belonged to them on their own were considered common property – and an equal number are unpleasantly surprised when they discover that what they thought was common property really belonged only to the other person. A marriage contract is a legal agreement that two people enter into before the marriage. A prenup describes what happens to a couple`s financial assets in the event of a divorce. Many people use prenuptial agreements as a way to protect their property and circumvent what the law should do after a divorce.
If you live in a state that recognizes common-law marriage – and you meet that state`s requirements for proof of common-law marriage – then the property is divided in the same way as if you were officially married. For couples living in a community-owned state, this means that assets and debts are divided in the middle (currently, Texas is the only community-owned state that recognizes common-law marriage). In all other states, your assets and debts are distributed fairly, but not necessarily the same. From 2017, nine states will follow the rules of community ownership. These states are: Sometimes economic circumstances justify giving certain assets entirely to one of the spouses, but each spouse still has 50% of the total property of the community in terms of total economic value. This is more common with regard to matrimonial homes. Since it is not possible to divide a house in two, the court will often award the house to one of the spouses, and the other spouse will receive other property whose value is equal to half the value of the house. However, there are cases where a property is considered a single property. Individual property is that acquired before marriage or inherited by a spouse before or during marriage. It depends on the circumstances. If a judge determines that the house is separately owned by a spouse, then that spouse will get the house. Alternatively, a judge may grant both spouses a share of the house.
This usually means that one of the spouses has to buy the other or the house will be sold, with the proceeds being divided according to the court`s instructions. If the couple divorces or obtains a legal separation, all the property of the community is divided equally (50/50). The separate property of each spouse is distributed to the spouse who owns it and is not divided according to the 50/50 rule. In a state belonging to the community, the law generally considers all property acquired during a marriage as the property of both spouses. It treats debt the same way – what you earn, save and spend in marriage is, in most cases, irrevocably linked to the other person. There are a few exceptions that mainly concern successions. Here are some examples to help you understand who owns what in a community marriage: According to this doctrine, if a couple holds title or deeds to property, usually a house, then the title automatically passes to the surviving spouse after the death of a spouse, thus avoiding legal action. But if you live in a community-owned state and buy a house while you`re married, even if you buy it without your spouse, it`s considered community property. In fact, if you buy a home during a legal separation or divorce in a community state, it could mean that your spouse is entitled to property. Who owns what property in a marriage, after divorce or after the death of a spouse depends on whether the couple lives in a common law state or a community property state.
During marriage, these classifications may seem trivial – and are usually not a factor – but in unfortunate cases of divorce or death, these details become very important. .