Definition of Separate Property in a Prenuptial Agreement
Before two people get married, each person owns certain items. The items each person owns before the marriage are considered separate property, and each spouse retains ownership of those items in the event of a divorce. This can be stipulated in a prenuptial agreement.
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Date Acquired
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For property to be classified as separate property in a prenuptial agreement, it must be owned by one spouse before the date of marriage.
Commingling of Funds
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If you have a bank or investment account that is defined as separate property in a prenuptial agreement, marital funds should not be added to the account and the account should not be used to pay for marital expenses. When the separate property bank account is mixed with marital funds, the funds are considered to be commingled. The separate property bank account will lose its separate property status.
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Gifts and Inheritance
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Assets that one spouse acquires through gifts or inheritance are considered separate property by definition.
Business Ownership
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If a person has a business that is specifically referenced in a prenuptial agreement as separate property, the business will retain its separate property character as long as marital funds are not used in the business.
Personal Injury Awards
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The portion of personal injury awards attributed to one spouse's pain and suffering is considered separate property. This portion of the award will retain its separate property nature during the course of the marriage.
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