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Lucy, Esq.
Lucy, Esq., Lawyer
Category: Family Law
Satisfied Customers: 27682
Experience:  Attorney with experience in family law.
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If an asset is owned prior to marriage and appreciates

Customer Question

If an asset is owned prior to marriage and appreciates during the marriage is the appreciation considered a marital asset? Marriage was in Indiana and now living in Tennessee.
Submitted: 1 month ago.
Category: Family Law
Expert:  Lucy, Esq. replied 1 month ago.

Hi,

I'm Lucy, and I'd be happy to answer your questions today.

No, it isn't, unless the appreciation is due to an investment of marital assets or the efforts of the spouse. For example, if I own a small business before the marriage, and my husband quadrupled the value while working with me, he'd be entitled to part of that. Or if we used our income during the marriage to add a room to our house, he'd be entitled to half the appreciation due to the remodeling. But if an asset simply increases in value because that's what assets do, the spouse isn't entitled to any of it.

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Customer: replied 1 month ago.
If an asset such as an IRA does in infarct increase in value why would not that be considered a marital asset . assets just do not always increase in value as you indicate>
Expert:  Lucy, Esq. replied 1 month ago.

When an IRA increases in value due to earning interest or passive market fluctuations, that's not a marital asset. Accumulations on separate property are also separate property. If my spouse takes over my IRA and does a bunch of investing so it earns dividends, then they would be entitled to a portion of the increase.

Expert:  Lucy, Esq. replied 1 month ago.

Contributions to an IRA during a marriage are a marital asset and will be divided, even if the IRA was opened before the marriage.

Expert:  Lucy, Esq. replied 1 month ago.

Did you have any other questions about this?