Nevada is a community property state. This means that property that either spouse acquires during the marriage, including wages, is generally community property, regardless of whose name is on the title or paycheck. In a divorce, the court must divide community property equally to the extent practicable.
However, two exceptions can change that result. A valid written agreement, such as a premarital or postmarital agreement, can classify property differently. A judge can also order an unequal division if the judge finds a compelling reason and explains it in writing.
Located in Las Vegas, Nevada, Warnock Family Law represents spouses who need to identify, protect, or divide marital assets and debts in a divorce. Attorney Patricia H. Warnock can help you understand what is likely shared and what may belong to you alone before you sign a settlement. Reach out today to schedule a free consultation.
What Counts as Community Property?
Under Nevada law, all property either spouse acquires after marriage is classified as community property unless it falls into a separate-property category or a written agreement says otherwise. During the marriage, each spouse holds a present, existing, and equal interest in that property. Community property commonly includes:
Income earned by either spouse during the marriage.
A home, vehicles, and household goods bought during the marriage.
Retirement contributions and benefits earned during the marriage.
Bank and investment accounts funded with marital earnings.
Businesses started or acquired during the marriage.
Debts incurred during the marriage are generally treated as community obligations. However, one spouse cannot generally collect debts incurred before the marriage from the other spouse's separate property or share of the community property.
Nevada courts presume that property acquired during the marriage is community property. The spouse who claims otherwise must prove it by clear and convincing evidence, which is a demanding standard. A car titled only in your spouse's name, for example, is still presumed to be shared if you bought it during your marriage.
What Remains Separate Property?
Under Nevada Revised Statutes 123.130-190, Nevada has strict laws for what classifies as separate property. These typically include the following.
Property you owned before the marriage.
Property you received during the marriage by gift or inheritance.
An award of personal injury damages.
The rents, issues, and profits that separate property produces.
Separate property is not divided in a divorce, but keeping it separate is often challenging. For example, if you deposit an inheritance into a joint account and use it for household bills, it can become difficult to trace over time. An untraceable asset may be treated as community property. Bank statements, closing documents, account records from the date of marriage, and records of gifts or inheritances are often the evidence that settles these disputes.
How Do Nevada Courts Divide Community Property?
Under Nevada Revised Statutes 125.150, the courts are required to equally divide community property to the extent practicable. That does not mean every item is split in half. A judge often balances the overall estate instead. One spouse might keep the house while the other keeps a comparable share of retirement savings.
An unequal division requires a compelling reason, stated in writing. One spouse's dissipation of community funds, such as money spent on an extramarital affair, can justify awarding the other spouse a larger share.
Valuation and tracing disputes become more complex when a marriage involves business interests, investment portfolios, or multiple properties. These questions often take center stage in a Nevada high-net-worth divorce.
The Family Home and Separate Contributions
Property that spouses hold as joint tenants is divided the same way as community property. If you used separate funds toward that property, such as a down payment from savings you had before the marriage, the court may reimburse you.
Reimbursement cannot exceed the amount of the separate contribution you can trace. It does not include interest or any increase in the property's value, and it cannot exceed the property's value at the time of division.
Payments toward loan interest, maintenance, insurance, or property taxes do not count as contributions. When deciding whether to reimburse you, the judge considers why the property was placed in joint tenancy, how long the marriage lasted, and other relevant factors.
Retirement Benefits and Other Special Assets
Retirement benefits earned during the marriage are typically community property, even when only one spouse's name is on the account. Nevada courts must explain, or make sure someone has explained, any provision in the decree dealing with pension or retirement benefits.
Special rules apply to Nevada Public Employees' Retirement System and Judicial Retirement Plan benefits. The community interest is based on the years worked during the marriage. It does not include future raises or promotions after the divorce.
Some assets cannot be divided at all. Nevada courts may not divide or assign federal disability benefits awarded to a veteran for a service-connected disability.
Assets Left Out of the Decree
If a divorce decree omits community property or debt because of fraud or mistake, either party can ask the court to divide it later. The motion must be filed within three years after discovering what caused the fraud or mistake. The court generally divides the omitted asset or debt equally. Full financial disclosure during the divorce is best to protect both spouses and prevent your divorce case from being reopened.
Protect Your Share of the Marital Estate With Warnock Family Law
Classifying, tracing, and valuing property often decides what each spouse is left with after a marriage. At Warnock Family Law, Attorney Patricia H. Warnock can help you determine whether your assets classify as community or separate property, gather records to support your position, and pursue a fair division through negotiation or at trial.
Attorney Patricia H. Warnock is a State Bar of Nevada Board Certified Family Law Specialist with more than 30 years of legal experience. She has represented hundreds of clients in divorce, custody, and jurisdictional disputes.
Located in Las Vegas, the firm serves clients throughout Clark County, Henderson, Centennial, Summerlin, Boulder City, Mesquite, Centennial Hills, Blue Diamond, Sun City, Providence, Tule Springs, Paradise, and Enterprise. Contact Attorney Warnock to schedule a free consultation.
