The recent news of the “Brangelina” (Brad Pitt and Angelina Jolie) split has me thinking...even the perceived “match made in Heaven” can end in divorce. The unexpected can become reality. So no matter how improbable divorce may be for you, plan for the unexpected.
Nevada is a community property state, and there is a presumption in Nevada that property acquired during marriage is community property and, therefore, subject to an equal division upon divorce. Some property, however, is not considered community property, unless commingled with community property. For instance, property brought into the marriage is generally the separate property of the spouse who owned the property prior to marriage. Also, inheritance is generally separate property.
How do we make sure, then, that commingling doesn’t happen? How do we deal with appreciation? How are mortgage payments treated? How are premium payments on life insurance, or 401(k)/IRA contributions treated? What do we do with family owned businesses?
Sometimes these questions are left unconsidered, whether because of premarital bliss, naivety, or some other reason. But as the news of Brad Pitt and Angelina Jolie’s divorce shows, the outcomes of human relationships are unpredictable. Sometimes (or many times) unexpected things happen, and we should be ready when they do.
Contact an attorney at JEFFREY BURR, LTD. to make sure you have the right plan and discuss with us your options for a separate property trust, a domestic asset protection trust, or other community property and separate property issues.