Is the spouse always entitled to a share of pre-marital equity’s post-marital appreciation?
Not necessarily. The key lies in the nature of the appreciation. If it is natural appreciation (passive market factors), it belongs to the individual and the spouse has no right to a division; if it is active appreciation (generated by one party’s post-marital management and input), it constitutes investment income and is marital property, to which the spouse is entitled. The burden of proof rests on the party asserting the claim.
Source article: ‘The Company Founded Before Marriage: Why Is Half of the Post-Marital Appreciation Distributed in Divorce? — Rules and Judicial Approaches for Dividing Pre-Marital Equity’s Post-Marital Appreciation’
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