Legal Question in Family Law in New York
Protection of Separate Property
I inherited a house and financial gift from my mother when she passed on some years ago. I live in the house with my fiancee and I wanted to know if when we get married does that house become marital property and therefore becomes subject to equitable distribution even though the house was received as a gift, is paid in full and my name is on the deed? I know that if I don't co-mingle these assets then it stays as separate property but there is an exception to the rule regarding the increase in value of these assets during the marriage.
5 Answers from Attorneys
Re: Protection of Separate Property
All my colleages who have previously answered your question are basically correct. Monies used to improve the property may be deemed co-mingled assets and will potentially affect the separation of the property and the value assessment should your worst fears be realized. Therefore I strongly recommend a very carefully drawn pre-nup agreement. These agreements if properly drawn clear up all ambiguities in the relationship and it's future. Do not be penny -wise and pound foolish. Contact my office and I will gladly help you accomplish your goals.
Re: Protection of Separate Property
If the value of separate property appreciates (increases) due contributions made to the property from marital assets, then the non titled spouse may be able to recover a portion of their contributions that added to the "appreciated value."
Good luck,
Phroska L. McAlister,ESQ
Re: Protection of Separate Property
As long as you are aware of the 'co-mingling' issue (and you cite the point in your quaestion, then mere increase in property values in your neighborhood will have no impact on the status of the house.\
Another attorney suggested a 'pre-nup', but if this is the only asset at issue, that is unlikely to be necessary. But please understand, money used for capital improvements and repairs that comes from your and her incomes is co-mingling.
Re: Protection of Separate Property
I agree with Mr. Clement. Over time, it is likely that things will happen to create a viable claim that at least part of the home's value was converted to marital property. The future is uncertain and now is the only time when you can make sure that your interests in the property will remain protected. Consult with a qualified attorney right away.
Re: Protection of Separate Property
There are a couple of exceptions to the rule that what is your separate property remains yours. For instance, if you use marital funds to make improvements, you spouse would be capable of recovering a portion of the increase attributible to the improvements. You would have to trace your separate contribution. Your best bet may be to consider a pre-nup.
Daniel Clement