What Assets Are Untouchable in a Divorce?

Going through a divorce is an emotional and unsettling experience. The struggle is particularly complex when you have significant assets that you believe should be exempt from New Jersey’s property division laws.

This blog from the well-informed family law attorneys at Moskowitz Law Group delves into this topic. We want to give you a better understanding of how your property is exempt from being divided in certain circumstances. Keep reading for answers to your question, “What assets are untouchable in a divorce?”

What About Premarital Property?

Premarital assets, such as money, property, or other belongings, can be untouchable in a divorce. For example, if you amassed a valuable coin collection before you took your vows, our legal team can argue that those items are premarital property exempt from being divided.

This can also be true for other assets such as investments and other financial accounts. However, if you transferred money to a joint account or used those funds to purchase marital property, such as the family’s home, the Court would no longer consider them untouchable due to the funds being commingled and thereby converted to marital property. That is why it is essential to keep a well-documented paper trail of bank statements, receipts, and any other relevant documents to prove that certain assets are yours and yours alone.

Are Gifts and Inheritances Untouchable?

Your Moskowitz Law Group attorney can argue that specific gifts and inheritances are not marital property, making these funds or items untouchable. It will depend on who gave them to you and how you handled them after receiving them. If your spouse gifted you cash or property, it would not be exempt because interspousal gifts are subject to being divided in a divorce. This includes valuable items such as jewelry.

However, if your grandfather willed the balance of his investment accounts to you, it may be exempt from division, even after marriage. If you deposit that money into a joint account or use it to purchase things that benefit the marriage rather than just you, it immediately loses its untouchable status, and it becomes more difficult to argue that the money is exempt. That is why we generally advise our clients to set up separate bank accounts for inheritances and gifts from third parties.

Pre-Nuptial and Post-Nuptial Agreements

Another legal way to make assets untouchable in a divorce is to execute a pre-nuptial or post-nuptial agreement. When drafted properly and meeting other legal requirements, these agreements can help you avoid any potential disagreements when it comes to dividing your and your spouse’s property.

Our family law attorneys are familiar with these agreements and can help you avoid making common mistakes in preparing them. We can draft a document that is free of such mistakes, including vague or unenforceable terms and suspected coercion, while ensuring all other legal requirements are met.

Contact a Skilled Family Law Attorney Today To Discuss Asset Division and Divorce

What assets are untouchable in a divorce? To get answers regarding your specific circumstances, reach out to our skilled team of family law attorneys today.

Do not leave your dividing your property division in the hands of a family court judge by going it alone. Take a proactive approach to retaining your premarital assets and other separate property by hiring Moskowitz Law Group. We will work tirelessly to protect what is yours in pursuing a fair and equitable settlement with your spouse.