When people divorce, they have to separate their resources and financial obligations. The property division process requires concessions from both spouses or sometimes the input of a family law judge.
People generally need to divide their assets in an appropriate manner, with both spouses maintaining an interest in almost everything earned or acquired during the marriage. Community property rules require that spouses share income and assets, even when one spouse may have earned far more than the other. In some cases, either spouse might be able to protect certain property by claiming it as separate property when they divorce.
What types of resources are not part of the marital pool of assets and debts?
Several types of property may be separate
Separate property remains the possession of one spouse after a divorce. The family courts generally treat any assets acquired before marriage as separate property. Spouses can also make agreements with one another designating certain assets as separate.
Property obtained as a gift or inheritance may also belong solely to one’s spouse. In cases where the courts award one spouse compensation for the other’s fraudulent conduct or bad faith management of marital assets, that property is also separate during a divorce.
Reviewing financial records can potentially help people establish that certain assets are not subject to division when they divorce. Spouses with separate property have a nest egg that they can use as they begin rebuilding their lives after the end of a marriage.
Those with complex marital estates, separate property and other complicating factors often need help preparing for property division proceedings, and that’s okay. Seeking legal guidance is a good way to get started.
