Does property owned before marriage become marital property?

When a marriage ends, there are property and assets that need to be divided between the parties. Determining what constitutes marital property can be difficult, especially when parties obtained property prior to the marriage. So, how does property owned before marriage fit into the division of assets?

What is Separate Property?

Property owned before the marriage is typically considered ‘separate property’ and is not automatically divided or allocated to the party who owned the property initially. However, there are circumstances and factors such as contribution or use of property, where separate property can become part of the marital pool for division.

How Are Contributions Considered?

The main factor in determining whether pre-marriage property will be included in the marital pool is contribution. Contribution to the property is not required to be exclusively financial. Direct contributions such as joint finances for the mortgage or paying for renovations, heavily increase the likelihood of the property being treated as an asset to divide.

Direct and Indirect Contributions

It is important to consider both direct and indirect contributions to the property. Indirect contributions, such as home-making or child-rearing, also play a crucial role in the determination. The court will consider both financial and non-financial contributions from both parties when deciding how assets should be divided.

The Length of the Marriage

Another important factor is the length of the marriage. Generally, the longer the marriage, the higher the likelihood that pre-marriage property will be considered part of the marital pool. This is because contributions from both parties throughout the marriage, whether direct or indirect, are taken into account over time.

What to Do if You Are Concerned About Pre-Marriage Property

If you are concerned about a pre-marriage property and how it may be treated in the event of separation, a Binding Financial Agreement (BFA) can be a helpful tool. A BFA can specify how property will be divided in the future, offering both parties clarity and security.
At Genuine Legal, our solicitors can advise on BFAs and property settlements. Book a consultation with a member of our team today to get expert advice on protecting your interests.

If you would like to talk about this further with one of our solicitors, please book a consultation through our website or call us on (07) 2113 4645.

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