West Newsmagazine 8-4-21

2 I
August 4, 2021
WEST NEWSMAGAZINE
@WESTNEWSMAG
WESTNEWSMAGAZINE.COM
Does It Matter How Property
is Titled in Divorce?
Many individuals wonder whether it
matters how property is titled in a divorce. In
other words, some theorize that if an asset is in
their individual name, it might mean that they
will receive this asset in a divorce.
It could be a variety of property or assets.
Some might try to title a bank account in their
own name. Others might purchase a vehicle
and put it in their own name. In other cases,
an individual might set up an investment account
that only has their name on it, but not
their spouse. The possibilities can be infinite.
When a divorce takes place, many think
the asset will be given to them by the court because
it is not jointly titled with their spouse.
A common question for many is whether this
is accurate or not.
The reality is that how property is titled
in a divorce is normally not that important.
Instead, in states where equitable jurisdiction
is controlling, courts look to when the property
or asset was acquired. If the property is
acquired during the marriage, it is normally
labeled marital property. However, if the property
was acquired before marriage, it is presumed
to be separate property.
Courts then have to divide marital prop-
erty in a just matter when considering all the
factors. The factors can vary by state, but they
can include different criteria. This includes
contribution of each party, the length of the
marriage, the education and work history of
the parties, the conduct of the parties in some
states, and a litany of other factors.
In terms of the titling of the assets, it is
truly not that important. If the asset is in one
spouse’s name, it does not matter if the asset
was acquired during the marriage. A party
cannot purchase property or buy an asset with
marital funds and assume that the asset will be
allocated to them in a divorce.
A prenuptial agreement is something to
consider for those who have substantial property
or assets prior to marriage. To ensure they
receive it in the divorce, they must agree to it
beforehand. Through a prenuptial agreement,
the parties can agree to have property or assets
set aside to them in the future.
It is vital to draft the prenuptial agreement
appropriately and that both parties have
independent counsel. Other important criteria
are that there needs to be full and fair disclosure
and that there be no duress or undue influence.
Even after the marriage, parties could enter
into a postnuptial agreement to denote who
would get what property or assets in the case
of divorce. That said, parties sometimes have
little incentive to do this after the marriage.
One potential exception is where a party
receives inheritance or gifts during the marriage.
Inheritance or gifts are generally viewed
as separate property in a divorce.
Thus, if parties place inheritance or gifts
in a separate account away from other marital
property or debt, doing so makes sense. Otherwise,
there can be a risk that the separate property
is commingled with other marital funds
or property. When this happens, it can convert
separate property into marital property.
For this reason, parties who receive inheritance
or gifts should speak to an attorney
if they want to ensure that it remains their
separate property. It often makes sense before
they receive the inheritance or gift to ensure
it is handled appropriately. A separate account
in this instance may make sense for liquid assets.
Stange Law Firm, PC limits their practice
to family law matters including divorce, child
custody, child support, paternity, guardianship,
adoption, mediation, collaborative law
and other domestic relation matters.
Stange Law Firm, PC gives clients 24/7
access to their case through a secured online
case tracker found on the website. They also
give their clients their cell phone numbers.
Call for a consultation today at 855-805-0595.
To schedule a consultation:
855-805-0595
WWW.STANGELAWFIRM.COM
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Kirk Stange is responsible for the content. Principal place of business 120
South Central Ave, Suite 450, Clayton, MO 63105. Neither the Supreme Court of Missouri/Illinois
nor The Missouri/Illinois Bar reviews or approves certifying organizations
or specialist designations. Court rules do not permit us to advertise that we specialize in
a particular field or area of law. The areas of law mentioned in this article are our areas
of interest and generally are the types of cases which we are involved. It is not intended
to suggest specialization in any areas of law which are mentioned The information you
obtain in this advertisement is not, nor is it intended to be, legal advice. You should
consult an attorney for advice regarding your individual situation. We invite you to
contact us and welcome your calls, letters and electronic mail. Contacting us does not
create an attorney-client relationship. Past results afford no guarantee of future results
and every case is different and must be judged on its merits.
West County Office
16024 Manchester Road, Suite 103
Ellisville, MO 63011
St. Louis County Office
120 S. Central Avenue, Suite 450
Clayton, MO 63105
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