Traditionally, the entire gamut of matrimonial law has been a creature of state law, not federal law. As such, federal courts generally may not intervene in the marital area unless a particular issue comes into conflict with federal law. Bankruptcy is one such area, and it can arise because of the effect that divorce has on spouses' property ownership and financial situation. In divorces involving a complex asset structure or extensive and varied types of property, bankruptcy by both spouses certainly can affect marital property distribution, depending in part on what distribution scheme the forum state follows. Otherwise, it often is the bankruptcy of only one spouse initially that sets off the complicated bankruptcy-divorce scenario.
In common law equitable distribution states, the general presumption is that workers' compensation is treated as marital property if acquired during the marriage. In pure community property jurisdictions, it is treated as community property if acquired during marriage and as separate property if it is acquired before marriage or after marriage dissolution.
One of the measures that may be put into place during a divorce proceeding is an order awarding temporary exclusive possession of the parties' marital residence to one of the spouses. Such an order is typically viewed as a harsh remedy and is only to be used when there is evidence of serious misconduct or abuse.
A premarital agreement, also known as a prenuptial or ante-nuptial agreement, is an agreement made between the parties in anticipation of their marriage. Such agreements can cover issues such as property division upon divorce, as well as child custody, child support, and alimony. Although premarital agreements have been increasingly embraced for their ability to resolve complex property and support issues without resort to trial, the lack of uniform language included in such agreements has been noted as potentially problematic.
The terms "commingling" and "tracing" are related concepts in the identification and division of property in divorce proceedings. Commingling occurs when a spouse or both spouses treat separate property in such a way that it loses its separate property character. Common ways for that to happen is for a spouse to use his or her separate property to pay marital debts, purchase marital property, collateralize a marital debt, or allow the other spouse to use the property as if it is marital property.
