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Is this appreciation marital property?

In a divorce my husbands 401k appreciated 10% but he never contributed into it. Is this appreciation marital property then?

Warner Center Law Offices of Donald F. Conviser
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No. I assume that the appreciation on your husband's premarital 401K contributionswas due to market forces as opposed to your husband's active trading of the 401K securities during the marriage. If your husband grew his 401K account by active trading during the marriage, it is possible that the Court could find the appreciation to be due to community efforts, and award the appreciation to the marital community (of which 1/2 would be yours).

Answer Applies to: California
Replied: 9/19/2011

Answer By Cathy R. Cook
The Law Office of Cathy R. Cook
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No, passive appreciation on non-marital money is non-marital.

Answer Applies to: Ohio
Replied: 9/19/2011

Theodore W. Robinson, P.C.
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Hello, Yes, that's exactly what appreciation is! If hedid not contribute to it, he went without a pay increase or something like that and the company put the money into his 401K instead and then invested it so it made money. Same as an investment account. Speak to a matrimonial lawyer. Good luck.

Answer Applies to: New York
Replied: 9/16/2011

The Law Offices of Robert W. Bellamy
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Alabama is a common law state. Courts will divide a couple's assets in an 'equitable' (fair) manner. Equitable doesn't necessarily mean 'equal,' but what's fair to both spouses.In deciding what's "equitable," a court will commonly take into account:The length of the marriageThe work history and job prospects of each spouseThe physical and mental health of each spouseThe source of particular assetsExpenses of the childrenTaking A Property InventoryYour assets are subject to equitable distribution during a divorce settlement. This means that 401(k) assets accumulated during your marriage probably, but not necessarily, will be divided 50-50. Other factors, such as the division of the rest of your marital assets, the length of your marriage, or what each of you contributed to the marriage will also play a part in the decision. What accumulated during your marriage would be subject to division.

Answer Applies to: Alabama
Replied: 9/16/2011

Answer By Erin Farley
The Law Office of Erin Farley
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Appreciation of separate property remains separate property.

Answer Applies to: California
Replied: 9/16/2011

Cody and Gonillo, LLP
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If it accrued during the marriage it will ordinarily be subject to equitable division.

Answer Applies to: Connecticut
Replied: 9/16/2011

Answer By Maury Beaulier
Beaulier Law Office
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That would be a form of passive appreciation if the account was not manipulated during the marriage by switching the investments in the account. Active appreciation occurs when gains are realized through some effort, such as studying the market and transferring investments.

Answer Applies to: Minnesota
Replied: 9/16/2011

Answer By Cassandra Savoy
Law Office of Cassandra Savoy
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The valuation date is the date of the filing of the complaint. If you file on January 1, 2011 and the 401K is valued at $10,000. and the divorce does not occur until February 2012, you are entitled to some portion of the $10,000 pls the interest earned on that portion of the $10,000.

Answer Applies to: New Jersey
Replied: 9/16/2011

Answer By Paul A. Eads
Law Offices of Paul A. Eads, A.P.C.
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Nope. Separate property appreciating in value does not become community property merely because it appreciated in value during the marriage.

Answer Applies to: California
Replied: 9/15/2011

Answer By Elizabeth Jones
Elizabeth Jones, A Professional Corporation
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If the appreciation is on money contributed before separation then it is community property.

Answer Applies to: California
Replied: 9/15/2011

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