Pre-Marital Trading Accounts. No money ever entered from marriage. 50/50 in divorce or not?

Discussion in 'Taxes and Accounting' started by David Donner, Aug 4, 2020.

  1. %%
    Maybe;
    especially if the woman makes more money. In the real world, figure on both getting ripped off/lawyers/courts making it a rip off ………………………………………………………………………………………
     
    #11     Aug 4, 2020
  2. speedo

    speedo

    Have the better lawyer.
     
    #12     Aug 4, 2020
  3. virtusa

    virtusa

    Reality is however different. Many judges have no clue about money and salaries.

    If you have to share your income with your ex and both keep the same lifestyle that is impossible for many people. You need everything in double: houses; cars, water, gas electricity. Only if you make a lot of money you can afford that. For the average joe it will not be possible.
     
    #13     Aug 4, 2020
    murray t turtle likes this.
  4. newwurldmn

    newwurldmn

    that’s typically more than 50percent of the assets and income for most families as there are expense synergies in couples
     
    #14     Aug 4, 2020
  5. bone

    bone

    I went through this. Generally, the balance as of the time of your marriage is your separate property, but the remainder is marital money that will get split (usually 50/50, does not matter in the least if she works or not).

     
    #15     Aug 4, 2020
  6. bone

    bone

    Yes, from experience I can verify. Same holds true for 401K programs.

    And it does not matter if the spouse is working or not. None.

     
    #16     Aug 4, 2020
  7. bone

    bone

    No, from what I've seen those soon-to-be-ex spouses are just as bitter and vengeful as the others. Only they have more resources to hire experts like forensic accountants and private investigators.

    Cougars require much cash flow. It's expensive servicing that young D.

     
    #17     Aug 4, 2020
    DarthSidious likes this.
  8. %%
    Mostly true;
    + the reason most get married= is because the want to. Another big mistake= people get so emotionaly entangled in divorce
    Really what's a big fat cat worth??[ Not worth anything if it comes on my property+ I see it around my pet birds/ I would never tell a female that unless her name was like annie oakely…..] A cougar or tiger is worth more; but we don't have tigers in my state.
    Hope this helps; I used to be in the home improvement business/never divorce over pastel colors...………………………………………………………………………………………………..
     
    #18     Aug 4, 2020
  9. To the best of my knowledge, the trading capital pre marriage is yours since it's considered "separate" property not marital. The gains during marriage can also be entirely yours but to keep them classified as "separate" the management of the capital has to be considered "passive". Day trading would be impossible to classify as passive but investing in the spy or a hedge fund would be.

    If you can automate your trading or pay someone to do it for you then potentially you could keep all the gains too.

    https://mbafcpa.com/advisories/differentiating-active-vs-passive-appreciation-divorce/
     
    #19     Aug 4, 2020
    murray t turtle likes this.
  10. bone

    bone

    Good luck with that. No way. Not unless you have some sort of preexisting (prior to marriage) family trust structure.

    For example, both your 401K contributions during the marriage and the gains on those contributions, even though "passive" during the marriage are community property subject to equal division by the Court.

     
    #20     Aug 4, 2020
    murray t turtle likes this.