In Missouri, courts treat investments made during a marriage as marital property. This means both spouses have a right to share them in a divorce. Investments one spouse owned before marriage usually stay separate unless the spouse mixes them with marital funds. Courts making property division decisions look at when the investment started and whether either spouse contributed to it during the marriage. If either spouse earned dividends or interest on a separate investment during the marriage, that income might also count as marital property.
The Presumption of Marital Property in Missouri
Missouri law presumes that all property and investments a couple gains during marriage belong to both spouses. Even if only one spouse’s name appears on the account, courts still call it marital property. A spouse can fight this presumption by proving the investment fits into an exception, like an inheritance or a gift. If a spouse wants to keep an investment separate, they need strong supporting evidence. Otherwise, the court will treat it as marital property and divide it accordingly.
Factors Missouri Courts Consider When Dividing Joint Investments
Courts in Missouri do not automatically split joint investments exactly down the middle. Judges look at many factors to decide what seems fair. For instance, they might consider each spouse’s financial situation, how much each spouse contributed to the investment, and what each spouse owns separately. They also look at who will care for the children and how each spouse behaved during the marriage. Judges aim to divide investments in a way that makes sense for both spouses, given their circumstances.
How Commingling Can Affect the Division of Investments
If a spouse mixes separate investments with marital money, courts look closely at what happened to determine how the investment should be divided. In Missouri, mixing funds does not automatically turn a separate investment into marital property. However, if a spouse meant to share the investment by combining it with marital accounts, the court could treat it as marital property. Thorough records and careful handling can protect separate investments from getting divided in a divorce.
Special Considerations for Retirement Accounts and Investment Funds
Retirement accounts like 401(k)s, pensions, and IRAs often make up a big part of a couple’s investments. Missouri courts treat any part of a retirement account earned during the marriage as marital property. Dividing these accounts takes extra steps and usually requires a special order called a qualified domestic relations order (QDRO). This order tells the retirement plan manager how to split the funds. Getting the paperwork and calculations right is essential for avoiding penalties and tax problems.
Can Spouses Agree on How to Divide Investments?
Yes, spouses can work out their own agreement about how to divide joint investments. If they agree, they can avoid long, expensive court battles. Missouri courts encourage spouses to settle property division themselves whenever possible. Judges still need to review the agreements, but the courts will usually approve them if they seem fair. Working together to reach a deal gives both spouses more control, keeps costs lower, and makes the divorce process move more swiftly.
Contact a Missouri Divorce Attorney Now
If you have questions about dividing joint investments during your Missouri divorce, contact Grant, Miller & Smith, LLC, for an initial consultation. Our divorce lawyers will listen to your concerns and explain your options. Let us help you protect your financial future and work toward a fair result.