also how is it with debt?
Answers:
I can answer this question in this way. I work for a bank and if your name is not on his/her account, then you have no legal rights to any of the money or debt if the account is over drawn. Like wise, the IRS or bill collectors can only go after accounts where the spacific person's social security number is listed. So if you owed money to the IRS but your wife/husband had a sole ownership account, they could not put a lein on it. Now that being said, if you have a joint account, even if only one person makes deposits, the money belongs to both people regardless of their relationship. Even if you put a complete stranger on your account, (yes it happens), they can empty and even close the account and it would be legaly ok.
both share in the earnings and debt
they both own both
Depends on the state. I think communal property is becoming more the norm, but I don't know for sure. That's your keyword search - "communal property law".
Contrary to what our banker said, it doesn't matter what the ownership of the account is if the account or the monies in deposit were accummunlated DURING the marriage.
The business of banking does not have priority over the law. And in a marriage, all assets and debts are marital property until such time as a LEGAL separation or divorce is granted.
Even if the account was opened before the marriage, all monies deposited after the marriage become marital property.
So, while a debt collector may not unilaterally place a lien on an injuried spouse's account, the court can.
EDITED FOR MANGOPUPPY'S CONTINUING EDUCATION:
Contrary to what you believe or what law school you attended, the issue of marital versus separate property is a matter for the court to decide during a dissolution of the marriage.
And also, contrary to your belief, there is no such designation as "Separate Property" state. There are provisions in all 50 states for the designation of separate versus marital property and in division of assets, EQUITABLE DISTRIBUTION principles that apply to some state statutes.
However, with 35 years of International and U.S. experience in the matter of family law, I have never read a statute which stipulates BEFORE DIVORCE the division of separate or marital property.
As I said, that is a designation left to the court upon dissolution of the marriage and not before.
In our current situation, and while the marriage is intact, the ONLY way the spouse's account could be protected is to have the court award her 'injured spouse' protection and then only on a showing that the debt is not being defeated by depositing marital funds into the account.
If $0.01 of marital funds or other assets have been deposited into the account, then it has been converted to marital property regardless of what the ownership documents say.
In the US of A, if you agree to share accounts, the money is legally shared. If you keep separate accounts, then the money legally belongs to the person who's name is on the account. Debt, however, is different, once married, if one person runs up a credit card debt, BOTH parties can be held liable, as being married is being considered " as one ". That's why you hear horror stories of divorces, where one spouse runs up a credit card, then leaves, leaving the other responsible ( my sister had that happen to her ). I personally keep joint and separate accounts with my wife. if one is more irresponsible than the other, the more responsible one shouldn't have to take the fall, too. I believe a little "self"-ishness is ok, it's ok to NOT share everything in life.
In a marriage, all assets belong to both, equally shared. Same thing with debts...they both own them equally.
Any asset or debt accumulated during the marriage is split 50-50...
The answer to your question is that it all depends on the state in which the H and W live and where they were married -- whether it's a "community property" state or a "separate property" state. I believe there are currently 14 community property states; most states in the U.S. are separate property states. So depending on where you live, the earnings are PRESUMED to fall under the category of separate property or community property, unless the H and W have both agreed to a "transmutation" meaning that they have agreed to change the nature of the earnings / debt from community property to separate property, and vice-versa.
TO HEXELIEBE: I assumed the asker's question related to categorization of earnings upon dissolution; if I was mistaken, I apologize to the asker and all readers. Also, I will not get into an argument with you regarding the particulars in all 50 states, but as I stated, I was explaining the PRESUMPTION of the courts in the event of a dissolution. And for your information, here in California we do distinguish between "community property" and "separate property" states, vis-a-vis the aforementioned "presumption" placed by the courts.
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment