Love, Relationships and Finance: Marriage vs. Money pt. 4

What about property that I acquired before the marriage? How is this regarded by the courts?

Property acquired before marriage is generally known as separate property. It remains separate for as long as you keep it in your name alone, your spouse doesn’t have access to it, and your spouse doesn’t contribute to its maintenance. (To be safe, specify your intention to keep your property separate in a pre-nup.) Problems can arise if your partner contributes time and/or money to help maintain a premarital property, thus increasing its value. In some states, whether or not your partner makes a contribution of time or money, the appreciation of the property -- that is, any increase in value -- may be considered a joint asset, unless the pre-nup states otherwise.

Good question. In some states, if you and your partner both invest time and effort in the management of the property, the current income may be considered a joint asset. If you use a management company, the rent is more likely to be considered a separate asset. Laws about this vary widely, so check the laws in your state.

What if I’m left an inheritance or given a gift of money by my parents after I’m married? Is that considered joint property?

In most states, the answer is no -- if the money was given specifically to you and you keep it in your name only, or if you buy something with it in your name only. Please note, however, that the longer a marriage goes on, the more the lines blur between partners’ separate property. Keeping clear title is crucial.

What about marriage and Social Security? I am a married woman who works and pays Social Security taxes, but someone told me she’ll be eligible for Social Security benefits based on her husband’s work record, even though she’s never worked or paid Social Security taxes. Does this mean that the Social Security taxes I’m paying are wasted, since I could get benefits on my husband’s record with out ever working?

Your friend is correct. However, the Social Security taxes you are paying are not wasted -- not by a long shot. As a married woman who works and pays Social Security taxes, you are eligible for your own retirement benefits. You may get a higher benefit when you retire than you would if your benefit were based solely on your husband’s earnings. You may be able to retire before your husband does and receive benefits based on your own earnings. Also, as a working woman, you are eligible to earn disability protection for yourself and your dependent children and, in the event of your death, your survivors may be eligible for benefits based on your earnings.

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