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My son is getting married later this year. He owns a substantial brokerage account which is solely in his name. Therefore it will be considered a "separate asset", as opposed to a "marital asset" as long as he does not commingle the account with a marital asset. And he certainly will not do that. In fact as has no intention of making any deposit or withdrawal from the account.
My question is: Will filing their income tax as married filing jointly affect the separate status of this brokerage account? Of course the income from the account would be part of the income reported. I will be paying the income tax.The state is NY, in case that's important.
thanks
What the heck does that mean???
I highly approve of the person he's marrying. So I think a divorce is highly unlikely. But they're young and you never can tell what will happen. So I'm just being careful.
Thanks for you very informative and useful response.
What the heck does that mean???
I highly approve of the person he's marrying. So I think a divorce is highly unlikely. But they're young and you never can tell what will happen. So I'm just being careful.
Thanks for you very informative and useful response.
What it means is mama is far too involved in the couple's life, financial life in particular. Are you going to tell him how much he can spend on <insert item here> here his whole life? It is apparently HIS money, so he can spend it, or not, as he sees fit, right? Or does he have to get your approval first?
As answered in your other thread ("The income from this account for 2014 will be over $100K. His future wife's income will be practically nill") ... get a lawyer. Get a pre-nup.
Invest in a few hours of consult time with a few lawyers.
This is the best advice you'll get. A substantial brokerage account that produces $100K in annual income is worth spending a few hundred or so in legal fees to protect, right? Do it.
Suggest to your son that he see an attorney and then get out of the way.
Texas is a community property state and if you keep your "assets" that you had prior to entering marriage separate they will stay that way after divorce. If you start mixing community property assets with separate that's a problem. You tax filing status isn't relevant
My son is getting married later this year. He owns a substantial brokerage account which is solely in his name. Therefore it will be considered a "separate asset", as opposed to a "marital asset" as long as he does not commingle the account with a marital asset. And he certainly will not do that. In fact as has no intention of making any deposit or withdrawal from the account.
My question is: Will filing their income tax as married filing jointly affect the separate status of this brokerage account? Of course the income from the account would be part of the income reported. I will be paying the income tax.The state is NY, in case that's important.
thanks
Filing jointly has no impact on asset ownership status.
You are correct, the lack of commingling any monies in the account will keep it as a separate asset.
However, any income generated in the account during the time of the marriage and until one of the parties files for divorce, will most likely be considered a marital asset in the event of a termination of the marriage.
The above should not be construed as legal advice
I agree with other posters, you/your son should consider talking to an attorney - one who specializes in these matters.
Depending on where in NY you are located, I might be able to make recommendations for appropriate professionals.
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