Personal Assets vs. Marital Assets: What's the Difference? Whose Property is the Wedding Ring?
It's believed that many people are still confused or unable to distinguish between marital assets and personal assets. How are they different? What is considered a marital asset, and what is considered a personal asset? Marital assets and personal assets are not the same under the law. When talking about the law, it might sound difficult to understand, right? Don't worry, because today we will explain it in a simple way that is easy to understand, even if you have no prior legal knowledge.
Here are 6 rules for distinguishing between marital assets and personal assets
1. Anything owned before marriage is always considered a personal asset.
Any property or item we legally owned before marriage, whether registered or unregistered – for example, untitled land, watches, eyeglasses, diamond rings, gold, businesses, evidence-based assets like money in bank accounts, cars, etc. – is considered a personal asset, provided that the ownership was completely finalized before the date of marriage registration. For instance, in the case of land, if a purchase agreement was made before marriage but the transfer of ownership occurred after the date of marriage registration, the ownership is considered to have been obtained after marriage. In this case, it is not considered a personal asset but rather a marital asset.
2. Personal assets remain personal assets even if their form changes.
In the event that personal land is sold and the proceeds are received, those funds are still considered a personal asset. This remains true whether the form of the asset is changed or if the cash obtained is used to buy more land, invest in stocks, or purchase anything else. This also includes trading in a personal car for a new one, which is still considered a personal asset.
3. Profits from personal assets are considered marital assets.
'Profits' here refer to anything that grows from the original asset or any benefits received. Profits are divided into two types: natural profits and legal profits. Any profits that arise from personal assets after the marriage registration is complete are considered marital assets under the law.
4. Anything acquired after marriage is considered a marital asset.
Legally, once a marriage is registered, the couple is considered life partners. Therefore, anything acquired after the marriage registration is considered a marital asset, regardless of what it is. This includes diamond rings, gold rings, and other valuable assets. If these are obtained after the marriage registration, they are marital assets, even if the couple no longer loves each other or lives together. As long as they are not legally divorced, any assets acquired are still considered marital assets.
5. Personal belongings for personal use or for occupation.
For personal belongings or items used for one's occupation, even if acquired after marriage, they are considered personal assets. This is a legal exception. Examples include dentures, eyeglasses, artificial limbs, clothing, etc. All of these, being for personal use, are still considered our personal assets even after marriage registration and are not marital assets. This also includes occupational items such as cameras, computers, and tools, etc. Even if acquired after marriage registration, they are still personal assets due to legal exceptions.
6. Engagement gifts are always personal assets.
Engagement gifts here refer to money, gold, engagement rings, diamond rings, gold rings, or other valuable assets given by the man to the woman before marriage registration. All of these are personal assets, also called pre-marital assets. However, if additional gifts are received after the marriage registration, they are considered marital assets.
What are the criteria for distinguishing between marital assets and personal assets? I hope everyone's doubts have been cleared and we all have a common understanding. As for the question of who owns the wedding ring, it depends on when the wedding ring or engagement ring was received. If it was received before the marriage registration, it's considered a personal asset or pre-marital asset. If it was received after the marriage registration, it's considered a marital asset.