RI Divorce Law Article: What is Marital Property and what is Exempt from Equitable Distribution?
Posted: Saturday, April 10, 2010
by David Slepkow
Slepkow Slepkow & Associates, Inc.
What property and assets constitute Marital Property subject to equitable distribution in RI?
All property acquired during the course of the Marriage by either party constitutes Marital property subject to equitable distribution with certain exempt property set forth below.
Gifts given by the parties to each other are marital assets which can be equitable divided in a Rhode Island Divorce.
Premarital property is not subject to the equitable division statute. Premarital property is property that was acquired by either spouse prior to the date of the marriage.
Income derived from premarital property during the course of the marriage is subject to the equitable distribution statute. The appreciation in value of premarital property during the course of the marriage is also subject to the equitable division statute.
In order for the appreciation of value of premarital property to be equitably divided, the appreciation must result from the efforts of the spouse who do did not own the asset prior to the marriage. This provision requiring that the appreciation result from the efforts of the other spouse is often loosely applied in Rhode Island (RI) Family Court, especially in marriages of long duration.
It is important to note that the Rhode Island (RI) Legislature made a distinction between interest and appreciation in determining whether the other spouse must have expended any effort. The RI legislature did not require any effort of the other spouse in order for interest derived from premarital property to be equitably divided by the Rhode Island Family court in a divorce. It is not required that interest earned from premarital property be derived from the efforts of the other spouse.
Gifts from third parties whether acquired before or during the marriage are not marital property subject to equitable division under Rhode Island Law. The income and appreciation from gifted property is not marital property. This specifically includes life insurance and distributions from trusts.
Inherited property is not marital property. The income and appreciation of inherited property is not subject to the equitable distribution statute in a RI divorce.
An advanced degree is not a marital asset. A professional's license such as as a lawyer's license to practice law is not a marital asset.
Personal Injury Settlements and Claims
A personal injury settlement or judgment for pain and suffering, future lost earnings and reimbursement for future medical bills are not marital property in RI. Awards for past medical expenses and past lost wages for a personal injury, slip and fall or workers compensation claim are marital property.Workers compensation awards compensating disfigurement is not marital property.
Social security Benefits
Social security benefits are not marital property.
Property acquired after the nominal hearing but before entry of Final Judgment.
If I hit the lottery after the Divorce Trial or Nominal Hearing but before entry of final judgment does my spouse get an equitable share? Yes, surprisingly assets acquired after trial but before entry of Final Judgment are marital property. All assets acquired up to entry of final judgment are marital assets unless the parties entered into a property settlement agreement stating specifically that those assets are non-marital
Legal Notice per Rules of Professional Responsibility:
The Rhode Island Supreme Court licenses all lawyers in the general practice of law, but does not license or certify any lawyer as an expert or specialist in any field of practice.
David Slepkow is a Rhode Island Divorce Lawyer concentrating in Divorce, Family law, Restraining Orders, Child Custody, DCYF, Child Support, Personal Injury and Automobile / Car Accidents. David has been practicing since 1997 and is licensed in Rhode Island (RI), Massachusetts (MA) and Federal Court. Free Initial Consultations. Credit Cards Accepted.
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