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Separate Bank Accounts Will NOT Protect Your Money In a Divorce—Here's What Will

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Jul 11, 2019

In New York equitable distribution governs marital assets.  Like this article states, keeping assets acquired during the marriage separate does not necessarily protect them in a divorce since assets acquired or earned during the marriage are considered marital assets.  It is however extremely important to keep “separate property” separately and only titled in that spouses name.  Therefore, inheritances or gifts of any kind, or premarital property, if kept separately, will remain separate property.  However, if they even touch joint name, they become marital.  Likewise, investment properties should also be kept separately.  If a property becomes a marital home, the person who owned it first will receive credit from the date that it became marital, but thereafter, it has a marital aspect. 

Once again, all of this can be avoided and property and assets can be protected by a Prenuptial Agreement. 

Selected excerpt(s), photo and linked article courtesy of Megan Leonhardt at CNBC