Jonas, a successful investment banker earning $400,000 per year, marries Penny, a nurse at a county hospital. While Jonas owns $1 million of real estate and $1.5 million in securities, Penny has no personal savings or property. After four years, they opt for a divorce. Over the four years of their marriage, Jonas has made $400,000 for the first two years and $500,000 for the remaining two. Penny has made $25,000 in the first three years, and $150,000 in the final year of their marriage. Their living expenses have been $130,000 per year, and they have $1,450,000 saved in a bank account. During the marriage, Jonas's real estate has increased in value to $1.5 million, and securities to $3 million. If they filed for divorce in a state that recognizes community property, what would be the separate property owned by Jonas at the end of their marriage?

Question

Quizplus · Accepted Answer

In a state that recognizes community property, assets acquired before the marriage remain separate property. Therefore, Jonas's $1 million of real estate and $1.5 million in securities, which appreciated to $1.5 million and $3 million respectively during the marriage, would still be considered his separate property.

Jonas, a Successful Investment Banker Earning $400,000 Per Year, Marries