--- title: "Separate vs. Marital Property: Understanding the division of assets in your divorce - Mahlen Financial" description: In this post, we share our expertise around how to determine whether your property is separate or marital and what that means or your division of assets. image: https://amf-divorce.com/hubfs/Imported_Blog_Media/qtq80-cpOdn4.jpeg --- ## A.M. Financial - [Services](https://amf-divorce.com/divorce-transition-services) - [Service Plan](https://amf-divorce.com/service-plan) - [Frequently Asked Questions](https://amf-divorce.com/frequently-asked-questions) - [Our Blog](https://amf-divorce.com/our-blog) - [About Amy](https://amf-divorce.com/about-amy) - [Contact Us](https://amf-divorce.com/contact-us) - [Services](https://amf-divorce.com/divorce-transition-services) - [Services](https://amf-divorce.com/divorce-transition-services) - [Service Plan](https://amf-divorce.com/service-plan) - [Frequently Asked Questions](https://amf-divorce.com/frequently-asked-questions) - [Our Blog](https://amf-divorce.com/our-blog) - [About Amy](https://amf-divorce.com/about-amy) - [Contact Us](https://amf-divorce.com/contact-us) [Book a Meeting](https://calendly.com/amymahlenmelander/consultdivorcefinancialplanning) # Separate vs. Marital Property: Understanding the division of assets in your divorce January 03, 2023 5 minutes to read Getting a divorce means learning a whole new vocabulary of legal and financial terms. Therefore, having a team of experts to talk you through new concepts and what to consider as you make important decisions is essential to surviving the divorce process. In this post, we share our expertise around how to determine whether your property is separate or marital and what that means or your division of assets. Please note that this article details general expertise and please consult your attorney and team of professionals for specific guidance. ## What is considered Marital Property? Just as it sounds, marital property is shared property in the marriage. Examples of marital property include property acquired after the parties are married, which is technically from date of marriage to date of filing for divorce however, the laws do vary by state and in some cases by specific situations. Marital property also includes property appreciation, which happens if the property was acquired before the marriage by one spouse but has gained value during the marriage. That appreciation is considered a marital asset. On the other side, debt accrued together is also marital debt. Sometimes questions arise with clients about how property is titled or who’s name is on accounts. It is important to note that it does not matter whose name is on the titles of cars, homes, rental properties, or other assets. If they were acquired while the parties were married, they are shared assets regardless of these legalities. The same goes for money in separate bank accounts, which is marital property if that money was accumulated during the marriage. In fact, all income earned by either spouse during the course of the marriage is considered a marital asset from a fundamental perspective. Gifts given from one spouse to the other during the marriage are typically marital property, although some exceptions apply and it’s always a good idea to seek legal advice from a state-specific specialist. Lastly, sometimes property exceptions are outlined in a prenup or postnup, which should also be reviewed by an attorney during your divorce. ## What is considered Separate Property? On the other hand, separate property is any property acquired separately before the marriage or any property or assets acquired after separation (even before the divorce is finalized). Exceptions to this, some of which are uncommon, include: - Any gifts given by a third party to one spouse  - Inheritances acquired by either spouse at any time - Money from a personal injury lawsuit paid specifically to one party for pain and suffering It’s important to note that all separate items must remain the party’s separate name in order to remain separate property. If these assets are co-mingled into joint title or joint accounts, they can become marital property. ![](https://amf-divorce.com/hs-fs/hubfs/Imported_Blog_Media/qtq80-7Te4PW-1024x683.jpeg?width=1024&height=683&name=qtq80-7Te4PW-1024x683.jpeg) ![](https://amf-divorce.com/hs-fs/hubfs/Imported_Blog_Media/qtq80-7Te4PW-1024x683.jpeg?width=1024&height=683&name=qtq80-7Te4PW-1024x683.jpeg) ## How is property divided? Generally, all marital property, assets, and debts are divided between the parties in a divorce. A division of property does not necessarily mean an exact physical division, but the overall value of all assets will be divided equally. For instance, if one party would like to retain all rental properties, the other party may receive more [retirement funds](https://mahlenfinancial.com/retirement-accounts-divorce-what-to-expect/). Separate property is not subject to division in this process. When you divide property, overall percentages are close to equal (50/50) in the end.  If the division is not exactly equal the parties can either agree to the difference or can determine an ‘offset’ transaction in which one party will pay the other spouse a specific amount in order to make it as equal as possible. This is where negotiation strategy from your [attorney](https://mahlenfinancial.com/finding-the-right-divorce-attorney-6-questions-to-ask/) and short- and long-term planning come into play with a financial advisor. Keep in mind that the overall percentage of assets can be drastically skewed if taxes are not taken into consideration, sometimes by up to 40% or more. A [Certified Divorce Financial Analyst](https://mahlenfinancial.com/certified-financial-divorce-analyst-a-m-financial/) can help you perform analysis on this as most family law attorneys do not provide this service. Each divorce is different and parties have unique wants and needs based on their goals and vision of the future. Some things may be more emotionally or psychologically important to one part or better align to future goals and plans. For example, you can’t physically split a house, but one party can receive the house in the divorce and the other can receive the cash from refinancing the home, or another asset to offset the difference. One party may value the home more for the kids while the other may want to retire earlier. In this case, one spouse could also buy the other out.  As another example, If maintenance is involved, parties can opt for a lump sum payout instead of monthly payments that would alter a 50/50 division. Equity in the home, or other assets, can be provided to the individual receiving maintenance in lieu of monthly payments. There must be sufficient assets available for this to be an option. This might be important to one party if cash is needed for a home down payment or vehicle purchase. When you officially transfer a property from a marital asset to one party in the divorce, the spouse not awarded the property must consent and relinquish all rights, title, and interest in the property by deed or other written agreement. This usually happens post-divorce with written stipulations of a specific deadline. At A.M. Financial, we help you understand different options for splitting marital property and what those options mean for your financial outlook now and in the future. We can provide the analysis you need to make decisions, and discuss how your needs and values align accordingly. [Contact us](https://mahlenfinancial.com/contact-us/) for a free consultation and learn more about how we can support your divorce today. - - - - - [mailto:?subject='https://amf-divorce.com/our-blog/separate-vs-marital-property'](mailto:?subject='https://amf-divorce.com/our-blog/separate-vs-marital-property') [Divorce](https://amf-divorce.com/our-blog/tag/divorce), [Property Division](https://amf-divorce.com/our-blog/tag/property-division), [Property](https://amf-divorce.com/our-blog/tag/property), [Divorce Budgeting](https://amf-divorce.com/our-blog/tag/divorce-budgeting) ### Related Posts ## [Options to Handle Rental Properties in a Divorce](https://amf-divorce.com/our-blog/rental-properties-mahlen-financial) While there is so much to sort through in a divorce, splitting up rental properties can add... [CONTINUE READING](https://amf-divorce.com/our-blog/rental-properties-mahlen-financial) ## [What should we do with the home in our divorce? ](https://amf-divorce.com/our-blog/home-in-divorce) If you are going through a divorce, one of the top questions likely on your mind is what to do... [CONTINUE READING](https://amf-divorce.com/our-blog/home-in-divorce) ## [How to divide non-retirement investments in your divorce](https://amf-divorce.com/our-blog/how-to-divide-non-retirement-investments-in-your-divorce) While the goal of every divorce is a fair and equitable division of overall assets, the specific... [CONTINUE READING](https://amf-divorce.com/our-blog/how-to-divide-non-retirement-investments-in-your-divorce) ### Posts by Tag - [Divorce (59)](https://amf-divorce.com/our-blog/tag/divorce) - [Finances (39)](https://amf-divorce.com/our-blog/tag/finances) - [Planning (34)](https://amf-divorce.com/our-blog/tag/planning) - [Divorce Budgeting (33)](https://amf-divorce.com/our-blog/tag/divorce-budgeting) - [Financial Planning (28)](https://amf-divorce.com/our-blog/tag/financial-planning) - [Budgeting (23)](https://amf-divorce.com/our-blog/tag/budgeting) - [Taxes (20)](https://amf-divorce.com/our-blog/tag/taxes) - [Retirement Accounts (11)](https://amf-divorce.com/our-blog/tag/retirement-accounts) - [Assets (10)](https://amf-divorce.com/our-blog/tag/assets) - [Divorce Options and Methods (10)](https://amf-divorce.com/our-blog/tag/divorce-options-and-methods) - [Maintenance (9)](https://amf-divorce.com/our-blog/tag/maintenance) - [Child Support (8)](https://amf-divorce.com/our-blog/tag/child-support) - [Investments (8)](https://amf-divorce.com/our-blog/tag/investments) - [Retirement (8)](https://amf-divorce.com/our-blog/tag/retirement) - [Property (7)](https://amf-divorce.com/our-blog/tag/property) - [Property Division (7)](https://amf-divorce.com/our-blog/tag/property-division) - [Real Estate (7)](https://amf-divorce.com/our-blog/tag/real-estate) - [Spousal Support (7)](https://amf-divorce.com/our-blog/tag/spousal-support) - [Emotions (6)](https://amf-divorce.com/our-blog/tag/emotions) - [Family (6)](https://amf-divorce.com/our-blog/tag/family) - [Mediation (6)](https://amf-divorce.com/our-blog/tag/mediation) - [Retirement Planning (4)](https://amf-divorce.com/our-blog/tag/retirement-planning) - [Separation (4)](https://amf-divorce.com/our-blog/tag/separation) - [Tips (4)](https://amf-divorce.com/our-blog/tag/tips) - [Co-Parenting (3)](https://amf-divorce.com/our-blog/tag/co-parenting) - [Coaching (3)](https://amf-divorce.com/our-blog/tag/coaching) - [Court (3)](https://amf-divorce.com/our-blog/tag/court) - [Estate Planning (3)](https://amf-divorce.com/our-blog/tag/estate-planning) - [Kids (3)](https://amf-divorce.com/our-blog/tag/kids) - [Counseling (2)](https://amf-divorce.com/our-blog/tag/counseling) - [Home (2)](https://amf-divorce.com/our-blog/tag/home) - [Interest Rates (2)](https://amf-divorce.com/our-blog/tag/interest-rates) - [Lawyer (2)](https://amf-divorce.com/our-blog/tag/lawyer) - [Mediator (2)](https://amf-divorce.com/our-blog/tag/mediator) - [CFI (1)](https://amf-divorce.com/our-blog/tag/cfi) - [College (1)](https://amf-divorce.com/our-blog/tag/college) - [Do It Yourself (1)](https://amf-divorce.com/our-blog/tag/do-it-yourself) - [Gifts (1)](https://amf-divorce.com/our-blog/tag/gifts) - [Healthcare (1)](https://amf-divorce.com/our-blog/tag/healthcare) - [Inflation (1)](https://amf-divorce.com/our-blog/tag/inflation) - [Insurance (1)](https://amf-divorce.com/our-blog/tag/insurance) - [Litigation (1)](https://amf-divorce.com/our-blog/tag/litigation) - [PRE (1)](https://amf-divorce.com/our-blog/tag/pre) - [Remarriage (1)](https://amf-divorce.com/our-blog/tag/remarriage) - [Stock (1)](https://amf-divorce.com/our-blog/tag/stock) - [Stock Market (1)](https://amf-divorce.com/our-blog/tag/stock-market) - [Transfers (1)](https://amf-divorce.com/our-blog/tag/transfers) - [Travel (1)](https://amf-divorce.com/our-blog/tag/travel) See all ##### About Amy With compassion and patience, Amy focuses on her client’s unique priorities to build a financial road map that provides clarity to make informed decisions today regarding the future. ##### Links - [Home](https://amf-divorce.com) - [Services](https://amf-divorce.com/divorce-transition-services) - [Our Blog](https://amf-divorce.com/our-blog) - [About Amy](https://amf-divorce.com/about-amy) - [Contact Us](https://amf-divorce.com/contact-us) - [Schedule a Meeting](https://calendly.com/amymahlenmelander) ©2026 Copyright. All rights reserved. A.M. Financial provides supporting financial information, evaluation and analysis to be utilized by the client and the client’s selected attorney if directed, during the process of their divorce. ervices provided in regards to this agreement are solely fee-only and do not involve investment or security advice or insurance transactions. All information is financial in nature and should not be construed or relied upon as legal or tax advice. A.M. Financial IS NOT AN ATTORNEY AND DOES NOT PROVIDE LEGAL OR TAX ADVICE. Individuals are encouraged to seek competent legal and tax advice from professionals who specialize in divorce and tax laws in their respective state. Amy Melander (CRD #4692263) is an Investment Adviser Representative of OneDigital Investment Advisors, LLC (ODIA). ODIA and A.M. Financial are independent and unaffiliated entities. ODIA does not offer or provide divorce financial planning services and any statements and/or opinions expressed by A.M. Financial do not represent the views and/or opinions of ODIA.   This website is a publication of A.M. Financial. Information presented is believed to be factual and up-to-date, but we do not guarantee its accuracy and it should not be regarded as a complete analysis of the subjects discussed. All expressions of opinion reflect the judgment of the authors as of the date of publication and are subject to change. Content should not be viewed as personalized investment advice or as an offer to buy or sell, or a solicitation of any offer to buy or sell the securities mentioned herein. A professional adviser should be consulted before implementing any of the strategies presented. Certified Financial Planner Board of Standards Inc. owns the certification marks CFP®, CERTIFIED FINANCIAL PLANNER™, CFP® (with plaque design) and CFP® (with flame design) in the U.S., which it awards to individuals who successfully complete CFP Board’s initial and ongoing certification requirements. ```json { "@context" : "https://schema.org", "@type" : "BlogPosting", "author" : { "@type" : "Person", "name" : "Amy Mahlen", "url" : "https://amf-divorce.com/our-blog/author/amy-mahlen" }, "dateModified" : "2023-06-01T12:43:39.640Z", "datePublished" : "2023-01-03T05:00:00.000Z", "headline" : "Separate vs. Marital Property: Understanding the division of assets in your divorce - Mahlen Financial", "image" : [ "https://amf-divorce.com/hubfs/Imported_Blog_Media/qtq80-cpOdn4.jpeg" ], "mainEntityOfPage" : { "@id" : "https://amf-divorce.com/our-blog/separate-vs-marital-property", "@type" : "WebPage" }, "publisher" : { "@type" : "Organization", "logo" : { "@type" : "ImageObject", "url" : "https://amf-divorce.com/hubfs/amf-divorce-logo.jpg" } } } ``` ```json { "@context" : "http://schema.org", "@type" : "BlogPosting", "articleBody" : "Getting a divorce means learning a whole new vocabulary of legal and financial terms. Therefore, having a team of experts to talk you through new concepts and what to consider as you make important decisions is essential to surviving the divorce process. In this post, we share our expertise around how to determine whether your property is separate or marital and what that means or your division of assets. Please note that this article details general expertise and please consult your attorney and team of professionals for specific guidance. What is considered Marital Property? Just as it sounds, marital property is shared property in the marriage. Examples of marital property include property acquired after the parties are married, which is technically from date of marriage to date of filing for divorce however, the laws do vary by state and in some cases by specific situations. Marital property also includes property appreciation, which happens if the property was acquired before the marriage by one spouse but has gained value during the marriage. That appreciation is considered a marital asset. On the other side, debt accrued together is also marital debt. Sometimes questions arise with clients about how property is titled or who’s name is on accounts. It is important to note that it does not matter whose name is on the titles of cars, homes, rental properties, or other assets. If they were acquired while the parties were married, they are shared assets regardless of these legalities. The same goes for money in separate bank accounts, which is marital property if that money was accumulated during the marriage. In fact, all income earned by either spouse during the course of the marriage is considered a marital asset from a fundamental perspective. Gifts given from one spouse to the other during the marriage are typically marital property, although some exceptions apply and it’s always a good idea to seek legal advice from a state-specific specialist. Lastly, sometimes property exceptions are outlined in a prenup or postnup, which should also be reviewed by an attorney during your divorce. What is considered Separate Property? On the other hand, separate property is any property acquired separately before the marriage or any property or assets acquired after separation (even before the divorce is finalized). Exceptions to this, some of which are uncommon, include: Any gifts given by a third party to one spouse Inheritances acquired by either spouse at any time Money from a personal injury lawsuit paid specifically to one party for pain and suffering It’s important to note that all separate items must remain the party’s separate name in order to remain separate property. If these assets are co-mingled into joint title or joint accounts, they can become marital property. How is property divided? Generally, all marital property, assets, and debts are divided between the parties in a divorce. A division of property does not necessarily mean an exact physical division, but the overall value of all assets will be divided equally. For instance, if one party would like to retain all rental properties, the other party may receive more retirement funds. Separate property is not subject to division in this process. When you divide property, overall percentages are close to equal (50/50) in the end. If the division is not exactly equal the parties can either agree to the difference or can determine an ‘offset’ transaction in which one party will pay the other spouse a specific amount in order to make it as equal as possible. This is where negotiation strategy from your attorney and short- and long-term planning come into play with a financial advisor. Keep in mind that the overall percentage of assets can be drastically skewed if taxes are not taken into consideration, sometimes by up to 40% or more. A Certified Divorce Financial Analyst can help you perform analysis on this as most family law attorneys do not provide this service. Each divorce is different and parties have unique wants and needs based on their goals and vision of the future. Some things may be more emotionally or psychologically important to one part or better align to future goals and plans. For example, you can’t physically split a house, but one party can receive the house in the divorce and the other can receive the cash from refinancing the home, or another asset to offset the difference. One party may value the home more for the kids while the other may want to retire earlier. In this case, one spouse could also buy the other out. As another example, If maintenance is involved, parties can opt for a lump sum payout instead of monthly payments that would alter a 50/50 division. Equity in the home, or other assets, can be provided to the individual receiving maintenance in lieu of monthly payments. There must be sufficient assets available for this to be an option. This might be important to one party if cash is needed for a home down payment or vehicle purchase. When you officially transfer a property from a marital asset to one party in the divorce, the spouse not awarded the property must consent and relinquish all rights, title, and interest in the property by deed or other written agreement. This usually happens post-divorce with written stipulations of a specific deadline. At A.M. Financial, we help you understand different options for splitting marital property and what those options mean for your financial outlook now and in the future. We can provide the analysis you need to make decisions, and discuss how your needs and values align accordingly. Contact us for a free consultation and learn more about how we can support your divorce today.", "author" : { "@type" : "Person", "name" : "Amy Mahlen", "sameAs" : "", "url" : "https://amf-divorce.com/our-blog/author/amy-mahlen" }, "dateModified" : "03/01/2023", "datePublished" : "03/01/2023", "headline" : "Separate vs. Marital Property: Understanding the division of assets in your divorce", "image" : { "@type" : "ImageObject", "height" : 400, "url" : "https://cdn2.hubspot.net/hubfs/39875594/Imported_Blog_Media/qtq80-cpOdn4.jpeg", "width" : 750 }, "mainEntityOfPage" : "https://amf-divorce.com/our-blog/separate-vs-marital-property", "publisher" : { "@type" : "Organization", "logo" : { "@type" : "ImageObject", "url" : "" }, "name" : "A.M. Financial", "url" : "amf-divorce.com" } } ```