Marital Property in the U.S. — Here’s What You Should Know (2025)

When you marry, you’re not just joining lives. You’re also merging financial worlds.

From the day you say “I do,” the money you earn, the things you buy, and even the improvements you make to existing assets often become part of a shared financial picture.

That shared picture matters most when you’re facing divorce. Your state’s laws will decide which assets belong to you individually and which are considered marital property and therefore subject to division.

Understanding these definitions before or during a divorce can save you time, money, and stress.

What is Marital Property?

In most states, marital property includes nearly everything you and your spouse acquire during the marriage, regardless of who earned it or whose name is on the account, deed, or title.

That can be counterintuitive. Many people believe that if they “bought it themselves” or “put it in their name,” it’s automatically theirs. In reality, courts look at when and how the asset was acquired, not just the paperwork.

For example, if you buy a house after the wedding using your salary, it’s marital property even if your spouse’s name isn’t on the deed. The same applies to cars, savings accounts, investment portfolios, and even personal items of high value.

Why Does Timing Matter?

The point in time when you acquire an asset determines whether it’s marital or non-marital.

• Acquired before marriage? Likely non-marital.

• Acquired during marriage? Usually marital.

But there are exceptions, and those exceptions can cause major disputes during divorce proceedings.

When Does Separate Property Becomes Marital?

Some assets start out as non-marital but become marital through a process called commingling.

• Commingling funds: Mixing separate funds with marital funds, such as depositing inheritance money into a joint account.

• Contributing to improvements: If marital income is used to improve or repair a pre-marriage property, the increased value is often considered marital.

• Using joint credit or loans: Even if one spouse owns the asset, using a joint loan to enhance or maintain it can create a marital claim.

Special Categories That Often Confuse People

Appreciation of Separate Assets

If you owned a business before marriage and your spouse helped it grow, the increase in value during the marriage may be marital, even if the business itself remains yours.

Interspousal Gifts

It might feel romantic to give your spouse a car or expensive watch, but in legal terms, these are marital assets that may be divided in divorce.

Retirement Benefits

Retirement accounts are typically split into two parts: contributions made before the marriage (yours alone) and contributions made during the marriage (marital).

Property Held as Tenancy by the Entirety

In certain states, this form of ownership means both spouses own 100% of the property together, which can affect how it’s divided or transferred.

Community Property vs. Common Law Property

Where you live determines how marital property is divided.

• Community Property States (AZ, CA, ID, LA, NV, NM, TX, WA, WI): Everything considered marital property is generally split 50/50.
  
  

• Common Law States: Division is based on equitable distribution, which aims for fairness, taking into account each spouse’s contributions and circumstances.
  
  

Protecting Your Separate Property

If you want to keep certain assets out of the marital pool:

• Keep them in your name only.

• Avoid using marital funds for their upkeep or improvement.

• Keep clear records showing when and how you acquired them.

• Consider a prenuptial or postnuptial agreement. This is a legally binding document that spells out which assets remain yours in case of divorce.

The Bottomline

The way property is classified can impact your financial future for years. Misclassifying an asset could mean giving up half of something that should have been yours alone.

At Divorce.com, we help couples clearly identify marital and non-marital property early in the process.

Our guided divorce services walk you through cataloging assets, understanding your state’s rules, and filing court-approved paperwork, so there are fewer surprises and more control.

Marital Property FAQs

Is my house marital property if I bought it before marriage?

Usually, no. If you purchased it before the wedding, it’s separate property. However, if marital funds or your spouse’s labor improved or maintained the home, part of its increased value may be considered marital.

Are retirement accounts split in divorce?

Yes, at least the portion contributed during the marriage. The contributions and growth before marriage are typically separate property, while contributions and growth afterward are marital.

Can I turn marital property into separate property?

It’s difficult, but possible. This usually requires a postnuptial agreement or transferring the asset into a trust designed to maintain separation. Without legal agreements, courts often still treat the asset as marital.

How do community property states handle debt?

In community property states, debts incurred during the marriage are generally shared equally, regardless of whose name is on the account or who spent the money.

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