ABA Family Legal Guide

Family Law

3.4 Separation, Annulment, and Divorce

Property

How does a husband or wife keep nonmarital property separate and thus less likely to be lost in a divorce?

The main way to keep nonmarital property separate is to keep it in one's own name and not mix it with marital property. For example, if a wife came into a marriage with a $20,000 money market account and wanted to keep it as nonmarital property, she should keep the account in her own name and not deposit any marital funds in the account. She should not, for instance, deposit her paychecks into the money market account, because the paychecks are marital funds and the deposit could turn the whole account into marital property.

If a husband inherits some stock from his mother during the marriage and he wants to keep it as nonmarital property, he should open his own investment account and should not use the account for any investments that he and his wife own together.

If a husband or wife decides to use some nonmarital funds for a common purpose, such as purchasing a home in joint tenancy, that money will normally become marital property. The courts of most states will view the nonmarital property as a gift to the marriage. The property distribution laws have many intricacies and variations between states; understanding them usually requires a lawyer's help.