When is “nonmarital” and “marital” property converted to the other?
During a marriage, marital and nonmarital property is often mixed. Significant “sweat equity” may also be added to increase the value of the nonmarital property. The following principles apply to redistribution at divorce: • Conversion by gift: When one spouse makes a gift of nonmarital property to the marriage, the gift is converted to marital property. • Contribution and reimbursement: In the clear absence of intent to make a “gift,” contributions from nonmarital to nonmarital property, are reimbursable at divorce. However, the increase in value in value and the income received from the mixed property remains marital property. The above principles of gift, contribution, and reimbursement also apply to transfers from marital property and effort to nonmarital property.
