What is excluded from marital property?

Excluding the proceeds of disposition of non-marital property from marital property is grounded in the principles of equitable distribution during divorce proceedings. Non-marital property typically includes assets that one spouse owned prior to the marriage, inheritances received solely by one spouse, or gifts specifically bequeathed to one spouse. When such assets are sold or otherwise disposed of, the profits or proceeds derived from them maintain their non-marital character and are not subject to division. This preserves the individual ownership rights of the spouse who originally possessed the non-marital asset.

In contrast, assets acquired during the marriage or those that fall under the definition of family assets or jointly owned property are included in the marital estate, thus making them subject to equitable division upon divorce. Understanding these distinctions is crucial for comprehending how marital and non-marital properties are differentiated in legal contexts.