Separate vs. Marital Property: How the Difference Affects Distribution of Assets

Happily married couples may be fine living under the premise “what’s mine is yours and what’s yours is mine.” When marriages fail, though, distinguishing between separate property and marital property becomes important.

Although divorce laws vary by state, in most instances property acquired by one partner prior to their marriage is considered separate property. Assets acquired after the marriage, especially with comingled finances, are considered marital property. But it isn’t always cut and dry. There are circumstances under which separate property can become marital property, and this can affect the distribution of assets whether you live in a community property state like California or an equitable distribution state like New Jersey. To learn more about separate vs. marital property and how one can turn into the other read, “I bought my house before I got married. …”