Follow us on Facebook Comingling of Assets In Marriage
Monday, 16 January 2012 18:25 Written by David Canale
Married persons often inherit or receive gifts of property in their own names during the course of their marriage. A question that continually arises is how to keep this property "separate" from the marital estate, to ensure that the other spouse has no claim to it in the case of equitable division during the divorce. A recent Georgia Supreme Court case reaffirms the recent trend of categorizing such property as "marital," if it has been titled in the names of both spouses.
In Shaw v. Shaw, the Georgia Supreme Court affirmed the trial court’s judgment in a divorce case, which he characterized to properties as "marital." In that case, a husband had established two investment accounts in both his name and his wife’s name, and had transferred funds inherited from his mother into the two accounts. Despite his argument to the contrary, the trial court characterized the two investment accounts as "marital property," because the husband had title the accounts in his and his wife’s name. The trial court also classified a tract of real property the husband inherited from his mother as "marital property," because the husband had had the property transferred from his mother’s estate to him and his wife "as tenants in common."
When the potential for either inheriting or otherwise receiving substantial property occurs during the marriage, the spouse receiving the property should always consult with an experienced family law attorney, to ensure that the spouses wishes regarding classification of that property are served. Always consult with an experienced attorney to make sure that the property remains classified appropriately, whether that is "separate" or "marital." It is clear from the Shaw decision that titling property improperly can lead to a result that the original beneficiary of the gift does not want. Therefore, consult with an experienced family law attorney with our firm to make sure that you protect yourself in the future.
