Prenuptial Agreement. Download online state specific prenuptial agreements form (Premarital Contract)

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Prenuptial Agreement, Legal Forms - What is considered “separate” assets vs “marital” assets?

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Prenuptial Agreement<br>Related Legal Information  

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What is considered “separate” assets vs. “marital” assets?


When a couple divorces in some states, each party keeps his or her separate Property (so long as it was maintained separately during the Marriage and not commingled with marital funds). If the parties have not reached an agreement, the court divides the marital Property in the proportion that it deems "just" after considering all relevant factors. If you entered the Marriage with a house or investment portfolio or an inheritance, and kept title to those assets separate during the Marriage, these assets will be considered your separate assets and not subject to division. HOWEVER, the increase in value in those assets during the Marriage, as well as any assets purchased with income from your original assets, will be considered marital Property and subject to division upon divorce.
 
Keep in mind as well, that income contributed during the Marriage to a retirement plan (such as a 401(k)) would be considered marital Property. Further, the increase in value of your retirement account during the Marriage is marital Property. Consequently, upon divorce, the court could grant your spouse certain rights to your retirement plan account.
 
A Prenuptial (Premarital) agreement allows the engaged couple to alter the definitions of “separate” and “marital” assets in order to protect their assets and control distribution of assets upon death or divorce.
 
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How to Protect Your Assets Without a Prenup

Brides.com
“Any post-marital appreciation of premarital separate property can be considered marital property,” says Garber. “It all depends on whether the asset appreciates actively or passively.” Passive appreciation would be something like publicly traded stock.
How to Protect Your Assets Without a Prenup
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