Are a Child's Assets Marital Property?

|

Dividing marital property is one of the key tasks associated with a Pasadena divorce. In most cases, the division of assets is fairly straightforward. However, some parents may find themselves wondering if a child's assets are also included in the divorce.

If you and your spouse have a minor child with assets of his or her own, keep in mind that a child's assets are not normally considered marital property. For example, a savings account or stocks that a child received from a grandparent would be the child's personal asset and not subject to division in a divorce action. The same principle applies if the child has money earned from a job such as acting or modeling.

The exception to this rule is if there is reason to believe a parent is attempting to hide assets by placing them in the child's name. Hiding assets is illegal. A parent can't place money in a savings account for the child before the divorce and then take it out and use it for personal purposes once the divorce is finalized. The money needs to legitimately belong to the child. Money set aside by the parents for the child's future expenses is acceptable as long as the purpose of the account is explicitly stated in the divorce papers.

If there are assets placed in a trust, they are not subject to division during a divorce regardless of who they belong to. In fact, high net worth families often hold assets in a trust specifically to ensure that they are passed from family member to family member in the event of divorce. A bank or a trust company can be hired to act as a trustee if necessary.

How Can We Help?

Please call our office at (626) 683-8113 or email us at info@PasadenaLawOffice.com if you are in need of assistance relating to the division of marital assets. Our team of experienced Pasadena family law attorneys has the skills which are needed to ensure you receive the most favorable settlement possible.

Categories: