Marital vs. Separate Assets in Divorce
- As a divorce attorney, I consistently see money and financial stress as major sources of marital conflict.
- I've encountered this situation repeatedly: a client seeking a divorce reveals she inherited a ample sum during the marriage.
- During counseling, they agreed to deposit the inheritance into a joint account.
by Paul M. Talbert
As a divorce attorney, I consistently see money and financial stress as major sources of marital conflict. Sometimes, a notable imbalance in family resources creates anxiety or mistrust between partners. Therapists and marriage counselors naturally address these issues, but they need to understand their advice can have serious legal and financial consequences if the couple divorces.
I’ve encountered this situation repeatedly: a client seeking a divorce reveals she inherited a ample sum during the marriage. her husband, despite claiming indifference to “her family’s money,” felt keeping the inheritance separate showed a lack of trust or commitment.
During counseling, they agreed to deposit the inheritance into a joint account. Two months later, the husband filed for divorce, demanding an equal split of the funds. What began as a gesture of trust now threatens significant financial loss for the wife. A court might rule she has no greater claim to the inheritance than he does. Therapists should, therefore, have a basic understanding of divorce law before offering advice that could have major financial repercussions.
In a divorce, most states only divide marital property. Some, like California, are community-property states, requiring an equal division. Others, like New York and Florida, are equitable-distribution states, where property is divided equitably. Courts determine what’s ”equitable” based on factors outlined in state law – each state has its own specific list.
Crucially, most states protect certain property as “separate,” “exempt,” or “nonmarital” property.