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John Domestic
John Domestic, Lawyer
Category: Family Law
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Experience:  Over 13 years of Experience in Family Law.
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I am seriously considering filing for divorce. I have been

Resolved Question:

I am seriously considering filing for divorce. I have been for some time now. However, if at all possible, I would like to hold off until my son leaves for college.
I have an investment that was made prior to my getting married. We will be married twenty years this May.

The investment matures in April 2013. My son will be leaving for college in August of 2013. If the investment matures before I file, will my husband be entitled to any part of it when we divorce?

If it matures and I reinvest it before filing for divorce, would he be entitled to any of it? This option is probably out since I will need the money to help support myself, but I'm curious nonetheless.
Submitted: 4 years ago.
Category: Family Law
Expert:  John Domestic replied 4 years ago.

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Investments made prior to the marriage and not renamed into joint names or actively managed during the marriage retain the character as "separate property." Even if the investment matures and it is placed into a separate account or retained in a separate account it remains as separate property and not divisible in a divorce proceeding.

Customer: replied 4 years ago.
what does "actively managed during the marriage" mean?
Expert:  John Domestic replied 4 years ago.
"Actively managed" means you are reviewing and trading stocks in the investment account. It is certainly "actively managed" if you trade on a daily basis. If you trade on a weekly or monthly basis that is probably not "actively managed."
Customer: replied 4 years ago.
It is a "zero coupon" bond, so other than waiting for it to mature, nothing else was done.

If I place the funds into a separate, personal account, (after it matures) how do I show that the funds were from a pre-marriage investment? Just keep copies of the paperwork?
Expert:  John Domestic replied 4 years ago.
Keep copies of all paperwork and make sure the new account is in your name alone. Tracing is critical here.
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