Equitable Distributation


#1

spouse inherited dining room table and china cabinet some years ago. a house fire damaged items and with the insurance money that we received, monies placed in a joint account, the items were fixed/repaired and paid for out of the monies from the insurance company. both spouses were aware of what damages, repairs and where the money came from to pay for the repairs. a few years later, one spouse wants a divorce. so when doing ED, are the items inherited or joint. if spouse that inherited the items had spent their money for the repairs then I think it would be clear cut that the items are inherited, however joint monies were paid for the repairs. other spouse has not expressed any interest in wanting the items since if the shoe was on the other foot, they would want the same done for them. So, are they inherited or joint for ED?


#2

The courts use a “source of funds” rule to determine whether and to what extent an asset is part of the marital estate. To determine the extent of the marital nature of the asset would require an analysis of the value of the property before the damage, the current value, and the marital funds used to pay for the repairs.

If the other party hasn’t expressed an interest in wanting the items or wanting credit for the items,it seems that you would want to categorize the asset as separate and not include it in the division of assets.