Ben is a successful investment banker who earns $400,000 per year.Ben marries Elena,a nurse at a county hospital.At the time of their marriage,Ben owns real estate worth $1 million and securities worth $1.5 million,while Elena has no savings or property.After four years,Ben and Elena opt for a divorce.Over the four years of their marriage,Ben earns $400,000 in the first two years and $500,000 in the remaining two.Elena earns $25,000 in the first three years and $150,000 in the final year of their marriage.Their living expenses were $130,000 per year,and they have $1,450,000 of their earnings saved in a bank account.During the marriage,Ben's real estate increases in value to $1.5 million,and his securities increase in value to $3 million.If Ben and Elena file for divorce in a state that recognizes community property,what would be Ben's share of the real estate and securities holdings at the end of their marriage?

Question

Quizplus · Accepted Answer

In a community property state, property acquired during the marriage is considered joint property, with each spouse having an equal share. Therefore, Ben and Elena each own half of the real estate and securities acquired during the marriage. At the end of their marriage, the real estate is worth $1.5 million, so Ben's share would be $750,000. The securities are worth $3 million, so Ben's share would be $1.5 million. In addition to their joint property, Ben would also keep his separate property, which includes the real estate worth $1 million and securities worth $1.5 million that he had before the marriage. Therefore, Ben's total share of the real estate and securities holdings at the end of their marriage would be $2.25 million (=$750,000 + $1.5 million).

Ben Is a Successful Investment Banker Who Earns $400,000 Per