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How Do We Divide Part-Marital / Part-Separate Property?

The question of dividing part-marital and part-separate property most often arises in the following contexts:

• A home was one party's separate property, but during the marriage the parties made improvements; or
• A home was one party's separate property, but during the marriage its value increased; or
• A securities account was one party's separate property, but during the marriage the parties added to it, and/or its value increased.

In states where the concept of "separate property" is viewed more strictly, the courts have evolved rules that allow "tracing" of separate property as part of marital property. Click here for more on tracing.

In some states, it matters whether the increase in value was due to the efforts of a party during the marriage (in which case the increase belongs to both parties) or is simply passive (in which case the increase remains separate property).

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