Although often a touchy subject to bring up with your significant other or spouse, it is important to discuss your marital property rights prior to the possibility of a divorce or death. Here are some things to consider:
Here’s an example. Jane and John get married. Before the marriage, Jane sold her house and put the proceeds ($50,000) into her separate bank account. After they get married, Jane and John buy a new house together. They purchase the new house in both of their names. Jane puts her $50,000.00 toward the down payment on the new house.
Jane and John get divorced a year later. John wants to keep the new house, and Jane wants her $50,000.00 back. Without a valid prenuptial or postnuptial agreement, it is likely that Jane will only recoup 1/2 of her $50,000.00. The Court will presume that Jane made a gift to the “community.”