QUESTION
Is money saved in a mutual fund or IRA prior to marriage community property?
Asked on May 09th, 2013 on Divorce - California
More details to this question:
If not, is the interest made during the marriage given solely to the individual who owned the pre-marriage funds?
6 ANSWERS
Utah is not a community property state. However, money deposited in to a mutual fund or into an IRS during the marriage is martial property that is subject to being divided by the court in the final property settlement. This would include interest earned during the marriage. Money deposited into such accounts prior to the marriage is not marital property and is not subject to division in a divorce. This would include interest on the pre-marital contributions. When pre-marital accounts exist into which funds have also been contributed, the court will need to make an accounting of what part of the account is the result of contributions during the marriage in order to make an appropriate division of the funds in the account.
Answered on May 10th, 2013 at 2:35 PM
Family Law Attorney serving Peoria, AZ
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The Law Firm of Jessica M. Cotter, P.L.L.C.
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The general rule is that property owned prior to the marriage is and remains the sole and separate property of the spouse to whom it belonged prior to the marriage. This includes all interest or increase in value of the account or property. Should an account such as you describe be commingled with community funds (those earned or received after marriage) then there may be a community claim on the account. If a spouse had an IRA or other account prior to the marriage, and adds funds to it that are community funds, then that portion of the account is a community asset. Property received by way of inheritance is also separate property of the party who receives it. If an inheritance is placed in a separate property mutual fund, or other investment vehicle, then the principle and interest remain separate property unless and until the other spouses name is placed on the account.
Answered on May 10th, 2013 at 6:12 AM
If no contributions were made to those assets during marriage then the assets and their interest is not community.
Answered on May 10th, 2013 at 6:10 AM
Commercial Contracts Attorney serving Boise, ID
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Peters Law, PLLC
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The mutual fund is not community property, the earnings from it are community property.
Answered on May 10th, 2013 at 5:52 AM
Not so long as nothing was added to it from earnings during marriage.
Answered on May 10th, 2013 at 5:51 AM
Any property owned prior to marriage by one party is the separate property of said person. As such, the interest of said property would be considered separate property unless it could be shown to be income. Keep in mind that funds during marriage are often co-mingled, thus you must be sure that the fund or IRA have not been tampered with at all during the course of the marriage to ensure it remains separate property.
Answered on May 10th, 2013 at 5:48 AM