What Money Cannot Be Touched in a Divorce?

Understanding what money and assets are protected in a divorce is critical if you want to avoid losing property that may be legally exempt from division. This article breaks down what money and property cannot be touched in a divorce, how those protections can be lost, and what steps you can take to help protect your financial interests.

This guide focuses specifically on assets that may be protected or exempt from division, not just what courts typically divide in a divorce.

What Money Cannot Be Touched in a Divorce?

When it comes to divorce, not all assets are treated the same. Certain types of property may be protected and excluded from division.

The most common examples are gifted and inherited assets. Money or property given to one spouse as a gift, or received through an inheritance, is generally considered separate property and cannot be touched in a divorce, as long as it has been kept separate.

However, this protection can be lost through commingling. If gifted or inherited money is deposited into a joint bank account, used to pay marital expenses, or combined with shared funds, a court may consider it marital property. Once that happens, it may become subject to division.

Business Ownership Before Marriage: What Happens?

A business owned by one spouse before marriage may be considered separate and protected property. However, if marital funds, shared labor, or joint efforts contributed to its growth during the marriage, the increase in value may be viewed as marital property.

In these situations, the original business may remain protected, but the added value could be divided. Because this area can become legally complex, it’s important to work with an experienced attorney when business ownership is involved.

Understanding Marital Settlement Agreements (MSA)

A Marital Settlement Agreement (MSA) is a key legal document that helps define which assets are protected, which are divided, and how financial matters will be handled after the divorce.

This agreement typically covers property, debts, spousal maintenance, and other financial issues. Once signed and approved by the court, it becomes legally binding. For many couples, an MSA provides structure and clarity, especially when dealing with separate or protected assets.

What Do You Divide in a Divorce?

Dividing assets in a divorce can be complex, and the specifics often depend on your unique situation. If you’re unsure about what qualifies as marital property or want to protect certain assets, it’s best to speak with an experienced family law attorney. They can guide you through the process, help clarify what may be subject to division, and ensure your rights are protected. Contact us today to discuss your case and get professional guidance.