People preparing for divorce often have questions about their finances. Equitable distribution rules make it all but impossible for individuals to successfully predict the exact outcome of property division proceedings.
Much is left to the discretion of a judge if spouses litigate. What seems fair in one situation may seem inappropriate in another. Many people dislike the idea of handing control over their finances to a judge. They might prefer to settle property division disputes whenever possible.
To successfully negotiate a property division settlement, spouses need to have a realistic idea about what they might receive if the case goes to trial. While predicting the exact outcome is all but impossible, spouses can frequently identify assets that they can protect as non-marital property. What resources are usually not part of the marital estate during a divorce?
Assets acquired before marriage
Some people may have saved quite aggressively and put tens of thousands of dollars aside for their golden years before they ever married. Those funds could remain their separate property if they later divorce.
Generally speaking, any income or assets accumulated prior to marriage remain non-marital property in the event of a divorce. Any returns on investments or income generated by premarital resources are also typically separate property for the purposes of asset division in a divorce scenario.
Resources protected by an agreement
Prenuptial agreements have become more common in recent years. Spouses now also sometimes choose to draft postnuptial agreements after sharing their lives for years. Typically, spouses can expect to retain property designated as separate or non-marital assets in a marital agreement should they divorce.
Gifts and inherited property
Spouses may have numerous outside relationships that provide them with practical support before, during and after their marriage. Items received as gifts from someone other than a spouse typically remain the separate property of the person who received that gift.
Inherited assets usually also remain separate when people divorce. Provided that only one spouse was a named beneficiary of an estate, what they inherit remains separate unless they commingle it with other marital resources.
Those preparing for divorce often need to go over their financial records to identify their non-marital resources. Finding documentation about the provenance of non-marital assets is often the first step toward protecting those resources.