The difference between “marital” and “separate” is an important distinction. In a divorce, individuals can keep their separate property but must split up marital property. Some couples choose to create prenuptial agreements before they marry that address these items along with other aspects of family law, but younger couples are trying out a different approach. Unfortunately, it might not be as effective as they might hope.
In the not-too-distant past, it was relatively uncommon for married couples to maintain separate bank accounts. Now, a Bank of America survey shows that 28% of millennials who are married do not maintain joint accounts. Many of these young adults remember watching their parents and their friends’ parents go through nasty divorces, so they are often eager to minimize any areas of potential fighting.
However, separate bank accounts do not always translate to separate property. Income and other property acquired during a marriage is usually considered marital property. This means that even if one party’s individual income is deposited straight to his or her separate bank account, in all likelihood it will still be subject to property division as a marital asset.
Couples who want to protect their personal assets, income, and other interests may try out different tips and tricks for doing so; however, some of these approaches are not as effective as they might seem. When a soon-to-be married couple in Alabama wants to make sure their assets are protected, considering a prenuptial agreement that addresses this and a number of other family law matters is likely a wise idea.