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In a divorce my husbands 401k appreciated 10% but he never contributed into it. Is this appreciation marital property then?
16 ANSWERS
Family Law Attorney serving Boston, MA
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Law Offices of Susan Correia-Champa
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If you were married during the time that it appreciated then yes it is.
Answered on Jul 09th, 2013 at 12:45 AM
Family Law Attorney serving Petaluma, CA
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Law Office of Erin Farley
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Appreciation of separate property remains separate property.
Answered on Jun 23rd, 2013 at 11:54 PM
Probate Law Attorney serving Colorado Springs, CO
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John E. Kirchner
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Appreciation in a divorce setting refers to any increase in the value of an asset between the time of marriage and the time of divorce. It is only relevant when the asset already existed before the marriage or came into existence during the marriage by means of inheritance. Contributions to a 401k are not "appreciation" in that sense, but obviously will add to the possible increase in value. Depending on how the 401k is invested, however, there can be appreciation in value without additional contributions.
Answered on Oct 03rd, 2011 at 5:29 PM
Cohabitation Agreements Attorney serving Cincinnati, OH
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Cathy R. Cook, Attorney at Law
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No, passive appreciation on non-marital money is non-marital.
Answered on Sep 19th, 2011 at 2:37 PM
Theodore W. Robinson
Hello, Yes, that's exactly what appreciation is! If hedid not contribute to it, he went without a pay increase or something like that and the company put the money into his 401K instead and then invested it so it made money. Same as an investment account. Speak to a matrimonial lawyer. Good luck.
Answered on Sep 19th, 2011 at 5:01 AM
Mediation Attorney serving Bloomfield, NJ
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Cassandra T. Savoy, PC
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The valuation date is the date of the filing of the complaint. If you file on January 1, 2011 and the 401K is valued at $10,000. and the divorce does not occur until February 2012, you are entitled to some portion of the $10,000 pls the interest earned on that portion of the $10,000.
Answered on Sep 16th, 2011 at 1:35 PM
Family Law Attorney serving Pasadena, CA
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Law Offices of Paul P. Cheng
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Nope. Separate property appreciating in value does not become community property merely because it appreciated in value during the marriage.
Answered on Sep 16th, 2011 at 1:07 PM
If the appreciation is on money contributed before separation then it is community property.
Answered on Sep 16th, 2011 at 1:05 PM
Patricia C. Van Haren
If there were no contributions made during the marriage, then the community would not have an interest in the 401K.
Answered on Sep 16th, 2011 at 1:01 PM
If I understand your facts correctly, the answer is "no." The "rents, profits and issues" of community property are community, and of separate property are separate. If all contributions were separate property so is the accumulating interest and dividends.
Answered on Sep 16th, 2011 at 12:52 PM
4 Awards
In Louisiana, interest and appreciation are generally considered "fruits" of property which is considered community or marital property in a partition of property after divorce.
Answered on Sep 16th, 2011 at 10:48 AM
Glen Edward Ashman
Appreciation during a marriage is marital property.
Answered on Sep 16th, 2011 at 10:07 AM
The rule is that the rents, issues, and profits of community property are themselves community property. This means that if the 401K is community property, that any increase in value is also community property. Also, to the extent that the 401K is separate property, then, any increase in value is also separate property.
Answered on Sep 16th, 2011 at 9:43 AM
General Civil Trial Practice Attorney serving Beaverton, OR
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Vincent J. Bernabei, LLC
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That is passive appreciation, and is considered marital property.
Answered on Sep 16th, 2011 at 9:42 AM
Civil Attorney serving Spokane, WA
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Glenn E. Tanner, Attorney at Law
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If the principal was community, the earnings on the principal are community.If the principal was separate, the earnings are separate.
Answered on Sep 16th, 2011 at 9:42 AM
Contributions during marriage are community property, but appreciation of separate property remains separate property.
Answered on Sep 16th, 2011 at 9:21 AM