What is the Difference Between Community and Separate Property?
Separate and community property are two classes used to recognize whether property is claimed by one or the two companions in a marriage. Community property, as the name proposes, is everything that a husband and wife possess together. Community property by and large incorporates:
- All pay earned by either life partner during the marriage;
- All obligations caused during the marriage;
- Land acquired during the marriage;
- Cash held in joint ledgers; and
- Individual property got during the marriage (for example vehicles, furniture, gems, and so forth.).
Conversely, separate property will be property that is possessed by an individual life partner. Property that remaining parts separate during a marriage typically incorporates:
- Property possessed by a mate before the marriage;
- Property got by a mate after a legal separation;
- Property got as a blessing or legacy; and
- Obligations acquired by one mate before the marriage.
There are nine states that perceive community property law: Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington, and Wisconsin.
Would I be able to Change Separate Property into Community Property?
For an assortment of reasons, mates might need to change the status or responsibility for separate or community property. Normally, re-characterizing property is accomplished for comfort or gainful expense purposes. For the most part, property can be changed from separate property to community property through a prenuptial/postnuptial agreement or a legal process known as transmutation.
What is a Prenuptial Agreement?
A prenuptial/postnuptial agreement is a contract between life partners either previously or during the marriage that determines how they will isolate their property, obligations, salary and costs. While many partner these agreements with how property will be treated in case of the passing of a companion or divorce, they can likewise cover a scope of different issues, for example, how property will be ordered during marriage.
What is a Transmutation?
Transmutation is basically the process of changing the character of marital property from separate to communal or communal to separate. Separate property can be transmuted into community property by any of the accompanying techniques:
- Jointly titling property in the name of the two life partners; as well as
- Mixing together separate assets with community assets (for example consolidating separate property with marriage property, for instance putting pay earned before the marriage into a joint financial record).
Do I Need Family Lawyer?
How property is characterized can have significant outcomes during marriage and much more so in case of divorce. A local North Carolina family lawyer can assist you with exploring these convoluted legal measures in regard to marital property and guarantee that your interests are appropriately secured.