Marital Property
What does "Marital Property" mean in law?
Marital property encompasses all assets and debts acquired by either spouse during the course of the marriage, regardless of which spouse holds title, and is subject to division upon divorce under either equitable distribution or community property principles depending on the jurisdiction. The characterization of property as marital versus separate is often the most heavily litigated issue in divorce proceedings, requiring courts to trace the origin of funds, determine whether separate property has been commingled with marital assets, and assess whether one spouse's efforts enhanced the value of the other's separate property. Common examples of marital property include the family home purchased during the marriage, retirement benefits accrued during the marriage, and business interests developed with marital funds or efforts. The appreciation of separate property during the marriage may also be classified as marital property if the appreciation resulted from marital efforts rather than passive market forces.
Definition
Marital property encompasses all assets and debts acquired by either spouse during the course of the marriage, regardless of which spouse holds title, and is subject to division upon divorce under either equitable distribution or community property principles depending on the jurisdiction. The characterization of property as marital versus separate is often the most heavily litigated issue in divorce proceedings, requiring courts to trace the origin of funds, determine whether separate property has been commingled with marital assets, and assess whether one spouse's efforts enhanced the value of the other's separate property. Common examples of marital property include the family home purchased during the marriage, retirement benefits accrued during the marriage, and business interests developed with marital funds or efforts. The appreciation of separate property during the marriage may also be classified as marital property if the appreciation resulted from marital efforts rather than passive market forces.
Example
Although the husband argued that his retirement account was his alone because only his name was on it, the court classified the portion accrued during the twenty-year marriage as marital property subject to equitable distribution.