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Separate Property - Whats Love got to do with it?

One of the pitfalls in relationships is that many eventually end. When real and personal property are involved it can be difficult to muddle through it all. There are ways to protect both your personal and real property - before this happens¦

How does Separate Property affect Long Beach Home Ownership?

Why do people combine households without understanding what is involved in the dismantling of these relationships? Whether you are getting married, combining households or registering as domestic partners, the issues involved with home ownership and personal property are quite serious. When these relationships do not work out it is critical to have your paperwork in order.


This is easier to say than to do, I understand. It is a difficult subject to tackle with somebody you are in love with and are thinking about spending the rest of your life with. How many relationships actually last forever? It is reported that the divorce rate in America hovers in the 50% range.


From: Divorcerate.org

The divorce rate in America for first marriage, vs. second or third marriage
50% percent of first marriages, 67% of second and 74% of third marriages end in divorce, according to Jennifer Baker of the Forest Institute of Professional Psychology in Springfield, Missouri.'

According to enrichment journal on the divorce rate in America:

• • The divorce rate in America for first marriage is 41%
  • The divorce rate in America for second marriage is 60%
  • The divorce rate in America for third marriage is 73%

LaborLawTalk.com states the average divorce rate for the state of California is 75.54%, based on Court Statistics Reports for 1996-2004. These are staggering numbers and should not be ignored.

What is Separate Property?

Nolo defines separate property: In community property states, property owned and controlled entirely by one spouse in a marriage. At divorce, separate property is not divided under the states property division laws, but is kept by the spouse who owns it. Separate property includes all property that a spouse obtained before marriage, through inheritance or as a gift. It also includes any property that is traceable to separate property " for example, cash from the sale of a vintage car owned by one spouse before marriage-and any property that the spouses agree is separate property. Compare community property and equitable distribution.




Property owned prior to and brought into a marriage is considered separate property. In order for it to remain 'separate property' it must never be commingled with marital or community property. Once separate property is commingled with marital or community property it becomes community property and cannot be undone.


Some states, such as California, have a separate property rule that says that all property brought into a marriage, including gifts and inheritance, which is kept separate and apart from community property remains the separate property of the spouse that owns it.


If one spouse enters a marriage with a checking account with a large balance, say $100,000 and both parties deposit to this account and pay bills from it, the protection of separate property is removed and the original $100,000 has become community property. In this case if the marriage were to come to an end the $100,000 would be divided between the parties. Had the account been kept separate from the marriage, the original owner should leave the marriage with the $100,000 intact as separate property.

If one spouse enters the marriage already in possession of the home they must have a separate checking account for the management of the separate property. They must be careful not to deposit related funds to or from a community property account. If this is done, the home will most likely be deemed to be community property in the event of a divorce.

Anybody concerned with separate property issues should seek the advice of an attorney or a financial professional prior to entering into a relationship. They should then follow their advice.

Read also: Divorce and Real Estate in Long Beach California

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