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Will auto insurance settlement received before marriage be split in no-fault, marital property state divorce?

Plover, WI |

Wisconsin is a no-fault, marital property state with regards to divorce. My wife received an auto insurance settlement prior to our marriage. Will the settlement be split as marital property in our divorce?

Does it make any difference if I acquired student loan debt that was intended to be repaid with funds from my wife's auto insurance settlement?

Attorney Answers 1


  1. Assest brought into the marriage, (as well as inherited money), and NOT COMINGLED with marital assests, remain individual property. So if her insurance settlement, was prior to the marriage and she kept the money separate, then it is her property, not marital property. If it was simply deposited into a joint bank account though, then chances are it is marital property.

    As to the student loan debt, was there a written agreement that she would repay the debt with those proceeds. If not, then one of the rules under the "statute of frauds" is that certain agreements MUST BE IN WRITING. One of those agreements is the promise to pay the debts of another person. Now there are possible responsive arguments, such as reliance, but you need to consult a good attorney for that level of anaylsis.

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