Overseas property question

[donewithher]

What is the name of your state? Pennsylvania

Hi
So it looks like I may be headed for a divorce and I'm trying to get a sense of how the marital property might work out. I think here that all property acquired while married becomes jointly owned. We have three buildings here in PA, one residence and two rental units. She recently inherited a bunch of money and property in Europe. She sold the properties there and immediately bought other properties to avoid paying taxes on the money she got from it. My question is now that the money she got has been turned into property is it joint marital property? I have no interest in it other than a bargaining chip to keep our properties here once we split. Any ideas would be greatly appreciated. I expect her to go after half of my retirement funds, and make me have to sell me little fishing boat and shop tools and all but I can always buy that stuff again I suppose.

Thanks

 

[ShyCat]

Inheritances and gifts are separate property, not marital. The simple action of selling those European properties and buying new properties with the proceeds while still married does not change the new properties from separate to marital. It takes mingling with and/or usage of marital funds to possibly give you any marital interest in those properties.

 

[LdiJ]

What is the name of your state? Pennsylvania

Hi
So it looks like I may be headed for a divorce and I'm trying to get a sense of how the marital property might work out. I think here that all property acquired while married becomes jointly owned. We have three buildings here in PA, one residence and two rental units. She recently inherited a bunch of money and property in Europe. She sold the properties there and immediately bought other properties to avoid paying taxes on the money she got from it. My question is now that the money she got has been turned into property is it joint marital property? I have no interest in it other than a bargaining chip to keep our properties here once we split. Any ideas would be greatly appreciated. I expect her to go after half of my retirement funds, and make me have to sell me little fishing boat and shop tools and all but I can always buy that stuff again I suppose.

Thanks

An inheritance is separate property unless comingled, which is does NOT sound like she has done. Buying and selling property is not comingling assets. You are not going to be able to use her inheritance as leverage to get a greater share of the marital property.

You should also be aware that you do not have to sell your fishing boat or tools. Those are marital property but they can be offset by other marital property. In other words, not everything has to be turned into cash in order to be divided.

 

[donewithher]

Thank you both for the replies. Obviously there is much more I need to to learn about this topic. I'm unclear about what constitutes marital property. In PA it was my understanding that all property and assets acquired during the marriage were equally owned and thus equally divided upon divorce unless otherwise arranged.
When my father died two years ago he left me enough money to be able to replace my aging car. Does this exempt the car from the settlement?
I thought money from inheritance was exempt from divorce unless one then bought property with it, whether it be real estate or other assets. Apparently there are many considerations I need to become aware of. I will be enlisting the services of a local attorney once I get a grip on what I'm getting into and what my expectations should be.

 

[ShyCat]

When my father died two years ago he left me enough money to be able to replace my aging car. Does this exempt the car from the settlement?

Did you title the car in your name only and use only non-marital funds to pay car insurance and maintenance costs? If no, then that whole "comingle" thing bites you. If you titled the car in both of your names, you changed it to marital property. If it was titled in only your name but you used marital funds to maintain it, your wife can argue that she has at least some small interest in that car.

I thought money from inheritance was exempt from divorce unless one then bought property with it, whether it be real estate or other assets.

You thought wrong. For example, an inheritance check (asset #1) deposited into a separate bank account (asset #2) remains separate property even though the nature of that inheritance changed from a negotiable instrument (check) to a checking or savings account. When those funds are then used to purchase a Certificate of Deposit (asset #3) in the inheritor's name, that new asset is still separate property. It didn't magically become marital property just because the asset-type changed. Buying real estate is no different absent any other actions to comingle (e.g., adding spouse to deed).

 

[not2cleverRed]

What is the name of your state? Pennsylvania

Hi
So it looks like I may be headed for a divorce and I'm trying to get a sense of how the marital property might work out. I think here that all property acquired while married becomes jointly owned. We have three buildings here in PA, one residence and two rental units. She recently inherited a bunch of money and property in Europe. She sold the properties there and immediately bought other properties to avoid paying taxes on the money she got from it. My question is now that the money she got has been turned into property is it joint marital property? I have no interest in it other than a bargaining chip to keep our properties here once we split. Any ideas would be greatly appreciated. I expect her to go after half of my retirement funds, and make me have to sell me little fishing boat and shop tools and all but I can always buy that stuff again I suppose.

Thanks

Why shouldn't she get half of your retirement funds if the retirement funds were accrued during marriage?!

If all your contributions to the retirement funds were during the marriage, or your employer had a pension plan that your work during the marriage entitled you to benefit from, the that's a marital asset.

If some of the retirement funds were established prior to the marriage that becomes more complicated.

If all of the retirement funds were contributed to before the marriage, even up to 1 day before the marriage, then it is separate property.

 

[Junction]

Are the new properties in her name or both your names and are they in PA or in Europe?