Legal Definitions - Marital Property

Marital Property refers to all assets and debts that a couple acquires or creates together during the course of their marriage. This includes anything earned, purchased, or developed from the date of marriage until a specific point, which is typically the date of permanent separation or the final divorce decree, depending on state law. It does not matter whose name is on the title or account; if it was acquired during the marriage, it is generally considered marital property.

Furthermore, if an asset owned by one spouse before the marriage significantly increases in value due to the active efforts or contributions of either spouse (or both) during the marriage, that increased value can also be classified as marital property. Even future payments or benefits that were earned or created during the marriage, but are received after the divorce, can be considered marital property.

Here are some examples to illustrate what constitutes marital property:

• A couple purchases a family home five years into their marriage.

  Even if the mortgage and deed are solely in one spouse's name, because the house was bought and paid for during the marriage, it is considered marital property. Both spouses are presumed to have contributed to its acquisition, whether through direct financial contributions, managing household finances, or supporting the other spouse's career.

• One spouse owned a small, struggling graphic design business before marriage.

  During the marriage, the other spouse, who had a background in marketing, dedicated significant unpaid time to rebranding the business, developing a new client acquisition strategy, and managing its social media presence. As a result, the business's value quadrupled. While the business itself was initially separate property, the substantial increase in its value due to the marketing spouse's active efforts and contributions during the marriage would be considered marital property.

• A spouse works for a company that offers a substantial year-end bonus based on performance throughout the calendar year.

  If the couple separates in October and finalizes their divorce in January, but the bonus for the previous year's work (January to December) is paid out in February, the portion of that bonus earned from January through October of the previous year would typically be considered marital property. The right to that income was created and earned during the marriage, even though the actual payment occurred after the divorce.