Typically, separate property is obtained by one spouse before marriage, while marital property refers to assets that were obtained during a marriage. Separate property can become marital property during a marriage if assets become commingled.

Marriage is an event when two people and all they share become one—right? Well, when it comes to property, not always.

Some married couples prefer to share everything, while others might prefer to handle certain things separately—and when marriages end, who has ownership over what is also impacted by what state you live in.

Even if you and your partner don’t have much preference over who owns what, knowing how separate and marital property are classified can still be helpful as you make future financial decisions together.

To help you get a better sense of separate property and marital property,

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Separate property vs. marital property

Before and after a marriage, which spouse technically owns what?

Many people are surprised to learn that just because a possession has a title listing only one spouse’s name, that doesn’t necessarily deem that spouse the sole owner. Other factors, like when and how the asset was obtained and where you live, will have an impact on how ownership is legally defined.

What is separate property?

Separate property refers to property and assets you own as an individual to which your spouse wouldn’t have a claim.

While the type of property and the state you live in can come with certain exceptions, typically, property owned by only you or only your spouse before your marriage would be considered separate property.

Examples of separate property include:

Inheritance received by one spouse (before or during the marriage)

Gifts received by one spouse (before or during the marriage)

Settlement payments received by one spouse

Property deemed separate property in a written, legally sound agreement (like a prenuptial or postnuptial agreement)

What is marital property?

Marital property refers to property and assets that you acquire once you’re legally married.

While there may be certain exceptions, generally speaking, if you obtained funds or assets after you and your spouse got married, it’s likely shared marital property belonging to both of you.

If they were acquired or created during your marriage, the following could be considered marital property:

Bank accounts

Your home or other real property

Vehicles

Household items and personal belongings

Stocks and bonds

Retirement accounts

MORE: Does being married lower car insurance?

How separate property becomes marital property

If you and/or your spouse have separate property, the money could become marital property depending on state law or other actions. Here are a few examples of ways that could happen.

Merging multiple accounts into a single account

If you and your spouse had separate checking and savings accounts you opened before your marriage, they’d likely be considered separate property.

However, if you merged them into a joint account after your marriage, that new joint account would typically be considered marital property. That said, a checking or savings account that’s only in your name during your marriage could still be considered marital property under certain conditions.

Using separate property assets for your shared household

Separate property can become marital property through commingling of assets—in other words, if the property is made available to both spouses or used toward your joint expenses as a couple.

As an example, an inheritance received by one spouse is typically considered separate property if it’s inherited before the marriage or deposited into an account owned solely by that spouse during the marriage.

If that inheritance is deposited into a joint account, however, it could become marital property. Likewise, if you deposited your inheritance into an account that was your separate property, the money could become marital property if you use it to make payments on your and your spouse’s shared home.

If you accidentally commingled what you intended to keep as separate property, and there’s a chance you might be able to undo that commingling—but you’d have to be able to demonstrate your intent to keep the asset separate with the right documentation.

Pro Tip If you and your spouse intend to maintain sole ownership of certain accounts or property, it’s a good idea to seek counsel from a legal and/or financial advisor to make sure you’re taking the right steps to do so.

MORE: What happens to your car insurance after a divorce?

How does marital property get divided in a divorce?

If two people are getting a divorce, they can divide their property between each other however they’d like—as long as they could both come to a mutual agreement. If that agreement can’t be reached, a court will usually end up deciding for them.

When that’s the case, the way your marital property will be divided in a divorce can be determined by a handful of factors, including:

How and when the assets were obtained

Whether you live in a community property or equitable distribution state

Additionally, there may be some variance in whether a state defines the end of the marriage as when you became separated or when you became divorced.

What is equitable distribution?

The majority of state laws determine property ownership via equitable distribution, also known as common law. That means that marital property must be divided in a manner that is “fair and equitable”—but that doesn’t necessarily imply a 50/50 split.

Equitable distribution is decided on a case-by-case basis and will usually depend on the circumstances of the divorce.

Under equitable distribution, here are some factors that can influence how assets are divided:

Length of the marriage

Education level of each spouse

Income of each spouse

Financial and non-financial contributions during the marriage

Debts of spouses

Health status

Any tax implications that may come with property distribution

What is community property?

In community property states, all property and assets acquired during a marriage are considered the property of both spouses. Each spouse would presumably own half of all their shared assets (as well as half of their debts).

In a divorce, unless the couple can come to an alternative agreement, the marital property would be divided equally between spouses, in theory. However, there may be certain exceptions depending on the divorce’s circumstances and whether one or both spouses mishandled assets at some point.

To compensate for high-value assets that can’t be divided, a judge may order other assets to be sold to make up for the difference.

MORE: The best type of car insurance to get if you’re married

How to change your home insurance

So, your marriage is official, and now, your spouse is moving in! As you ring in an exciting new chapter together, you might also be inundated when trying to figure out some of the logistics that come with it—like how to add your spouse to your

homeowners insurance

policy.

Adding another person to your home insurance policy will vary depending on your insurance provider. Often, it’s just a matter of calling your home insurance provider and giving them the necessary information.

While you’re at it, it’s a good idea to take another look at your level of personal property protection to make sure you still have enough coverage for the extra belongings your spouse will be moving in.

Depending on certain factors, your home insurance premium might go up once you’ve added your spouse to your policy. If that’s the case, you might want to consider gathering home insurance quotes from other providers to see if you can get a better deal elsewhere.

Easily find home insurance

If all this sounds like a lot, it doesn’t have to be! With the

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It only takes about a minute to enter your information and start comparing quotes from top insurance providers. If you find better coverage at a better rate, our end-to-end support can help you with setting up your new policy and canceling your old one.

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FAQ

How does separate property become marital property?

While it may vary from state to state, generally, separate property can become marital property if it’s been made available for use by both spouses, or if separate assets are used to cover expenses jointly shared by a married couple.

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