Marital property refers to assets and debts acquired by either spouse during the course of a marriage. How this property is divided upon divorce depends vastly on the laws of the state, which generally fall into two categories: common law states and community property states.
Types of Marital Property
Common Law Property
In common law states, also known as equitable distribution states, property acquired by one spouse is typically considered that spouse’s sole property unless it was explicitly placed in the names of both spouses. Upon divorce, the court seeks to divide property equitably, though not necessarily equally.
Community Property
In community property states, most property acquired during the marriage is owned jointly by both spouses and is thus divided equally upon divorce. This includes wages, real estate, and other assets obtained during the marriage, regardless of which spouse acquired them.
Special Considerations
Prenuptial Agreements
Prenuptial agreements can override state laws concerning marital property by outlining specific terms for property division agreed upon by both parties before marriage.
Separate Property
Separate property includes assets acquired before marriage, inheritances, and gifts received by one spouse. These typically remain the property of the original owner.
Mixed Property
When separate property becomes commingled with marital property (e.g., adding a spouse’s name to a pre-owned home), it can become mixed property and subject to division.
Historical Context
The distinction between common law and community property has roots in differing legal traditions: common law derives from English law, whereas community property systems are influenced by Spanish law.
Common Law History
Common law emphasized individual ownership, where property acquired by one spouse was considered theirs alone unless a clear intention to share it was demonstrated.
Community Property History
Community property principles emerged from a philosophy of marriage as an economic partnership, with equal contributions from both spouses warranting equal division of assets.
Applicability
The determination of whether a state follows common law or community property principles significantly impacts divorce proceedings. Legal counsel is often necessary to navigate these laws effectively.
Comparison
Equitable Distribution (Common Law) vs. Equal Division (Community Property)
- Equitable Distribution: Focuses on fairness and the circumstances of each spouse.
- Equal Division: Presumes equal ownership, making the division straightforward.
Related Terms
- Equitable Distribution: The fair, but not necessarily equal, division of marital assets.
- Separate Property: Assets owned by one spouse prior to marriage or acquired by gift or inheritance.
- Prenuptial Agreement: A legal document signed before marriage outlining the distribution of assets in the event of a divorce.
FAQs
What determines a property's classification?
Can separate property become marital property?
Does the length of the marriage affect property division?
References
Summary
Marital property is crucial in divorce, with the division influenced by whether a state follows common law or community property statutes. Each system has unique rules and considerations, shaping the distribution of marital assets. Legal expertise is often necessary to navigate these complex laws effectively.
