Legal Definitions - separate property

Separate property refers to assets that belong solely to one spouse and are not considered jointly owned by both spouses in a marriage. This type of property remains under the individual control and ownership of that spouse, even in jurisdictions where marital assets are typically presumed to be shared (known as community property states).

Generally, separate property includes:

• Assets owned by a spouse before the marriage.
• Assets received by a spouse during the marriage as a personal gift from a third party.
• Assets received by a spouse during the marriage through inheritance.
• Assets acquired during the marriage using funds or other property that was already considered separate property.

In some legal contexts, property acquired after spouses have formally separated or initiated divorce proceedings may also be classified as separate property.

Here are some examples to illustrate the concept of separate property:

• Example 1: Pre-marital Asset
  Before marrying Alex, Brenda owned a small cabin in the mountains that she inherited from her aunt. Even after their wedding, the cabin remains Brenda's separate property because she acquired it prior to the marriage. If Brenda later sells the cabin and uses the proceeds to buy a new car, that car would also be considered her separate property, as it was acquired in exchange for a pre-marital asset.

  This example demonstrates how property acquired before a marriage is typically classified as separate property.

• Example 2: Inheritance During Marriage
  While married to Sarah, John inherited a significant portfolio of stocks from his grandfather. He kept these stocks in an investment account solely in his name. The stock portfolio is considered John's separate property because it was acquired through inheritance, a common category for individual ownership during a marriage.

  This example illustrates how assets received as an inheritance during a marriage are generally treated as separate property.

• Example 3: Gift from a Third Party
  For their tenth wedding anniversary, Maria's parents gifted her a valuable antique painting. They specifically stated the gift was for Maria alone. This painting is considered Maria's separate property because it was a personal gift given directly to her by a third party, rather than being acquired through the joint efforts or funds of Maria and her spouse.

  This example shows how a personal gift received from someone other than a spouse during the marriage is typically classified as separate property.