I have been trying to find a complete definition of community
property, but every definition I have found is not clear on one very
important aspect. It is probably simple so I hope someone here can
answer it for me. First, just a bit of background. I am 51, male,
and currently living in Texas. I have been financially independent
and living off my investments for the last 9 years. I will probably
be getting married again in the fairly near future.
Here are my questions:
1. During marriage is all the income I receive from my pre-marriage
property (stocks, real estate, CDs, money market funds, etc.) my
property? Since it all comes from my existing portfolio of
investments and not from investments made with outside income during
marriage I would expect this income (dividends, interest, capital
gains from stock sales, rental income, etc.) to not be community
property.
2. What about new investments I make using my pre-marriage property?
For example, if after marriage I take money from my pre-marriage money
market fund and buy a new stock and over time that stock appreciates
and I sell it is that capital gain my property and not community
property? Or, if after marriage I sell a pre-marriage stock or real
estate and use the proceeds to buy a new investment is that new
investment my property or community property?
Of course, I understand if I have new income such as salary from a
job, etc. then that is community property. My question just concerns
my existing, pre-marriage property and the income coming from it and
future transactions using this pre-marriage property. Thank you!