What is Marital Property?

Clients frequently ask which assets are considered to be “marital property” subject to equitable distribution in a divorce. Generally speaking, most assets acquired during the marriage are marital property, unless the parties have signed a pre- or post-nuptial agreement which specifies differently. This is true regardless of how those assets are titled; for example, a car purchased during the marriage in just one party’s name is generally still marital property, even though it is not titled in both parties’ names.

However, there are some exceptions to this general rule. Inheritance is generally not a marital asset, unless a party commingles (i.e. mixes) the inheritance with marital assets, for example by using the inheritance to make upgrades to the marital residence or spending it on a joint vacation with their spouse. Gifts from third parties (not the spouse) to one of the spouses during the marriage are generally also separate property.

Aside from assets acquired during the marriage, some assets acquired pre-maritally may also be, in part, marital assets. For example, a house purchased pre-maritally in just one of the spouse’s names is not a marital asset, but if the house has increased in value during the marriage, the increase in value is a marital asset even though the house itself is not. The same is true for a retirement account which a spouse held prior to marriage; the value of the account on the date of marriage is not subject to distribution, but if the account earned interest and/or there were additional contributions during the marriage, the interest and contributions during the marriage are marital even though the amount originally held in the account on the date of marriage is not.

For the most part, unless assets have increased in value as detailed above, most assets acquired prior to marriage are not subject to distribution in a divorce. For example, a bedroom set purchased by a party prior to marriage would typically not increase in value, and the purchasing party would be entitled to keep it after divorce even if both parties used it.

If you are interested in learning more or in discussing your unique divorce matter with one of our attorneys, contact Tanner Law Offices at (717) 731-8114 to schedule a consultation.