Know What's Considered Separate Property During A Divorce
If you're about to go through a divorce, you may assume that all of the property that you own will be divided equally. However, there is property that is considered separate property, which is not something that you need to negotiate in order to keep. Here are some examples of what is considered separate property.
Injury Settlements
Did you get injured at some point during your marriage, which resulted in a personal injury lawsuit where you received a settlement? Know that the money you won in the lawsuit is always going to be considered personal property. It is for your pain and suffering, future medical bills, and last wages. You won't have to fight for that money twice during a divorce.
Gifts And Income Generated From Gifts
If an item was given to you specifically as a gift, then that item is going to be considered your separate property during a divorce. However, you may not be aware that all income generated from that gift is also considered separate and doesn't need to be divided. For example, you may have sold the item that you received as a gift, and that cash would be considered yours. If you used that gift to make money, such as renting it to other people, then that income is also considered your own.
Property That You Own Before Getting Married
Any property that you owned in full before the marriage started would be considered your own personal property. However, things get confusing when property is not fully paid off before getting married. Your spouse may argue that their income went towards paying off the property that you started paying off before the marriage. If the purchase was in the clear before the marriage, consider it yours.
Inheritance Received During A Marriage
Were you given an inheritance at some point during your marriage? This could be in the form of physical property or money that was given specifically to you. Know that any inheritance that you received would still be considered yours, and wouldn't need to be split with a spouse.
Separate Fund Purchases
Did you and your spouse have an agreement where some of your income would be separated? You may have a joint account that you transfer money to for joint purchases and then keep separate accounts for individual purchases. If this is the kind of arrangement you have, know that those purchases made with your separate funds would count as separate property.
For more information on what is considered personal property, contact a divorce attorney near you.