The Missouri source of funds rule helps the divorce court divide property. Missouri law provides that property acquired prior to marriage is presumed the separate or pre-marital property of each spouse. Likewise, property acquired during a marriage is presumed to be marital property belonging to both spouses. The characterization of property as separate or marital can impact the division of these assets at a trial. Missouri courts follow the equitable distribution model when dividing property in a divorce. The property is divided fairly, but not necessarily equally; Missouri law does not provide that each spouse is automatically entitled to 50 percent of the property.

Missouri courts equitably distribute marital property to the divorcing spouses. If a party proves to the court that the property is separate property, then the court will set aside the separate property to that spouse. In Missouri, property acquired during a marriage in exchange for property that was the separate property of one spouse may remain the separate property of the spouse who expended his or her separate property. This is referred to as the Missouri source of funds rule. Under Missouri law, the divorce court must consider many factors in the characterization and division of property, including whether property acquired during a marriage is in exchange for separate property prior to the marriage.

All Property Is Assumed To Be Marital

Generally, Missouri courts will initially assume that all property a couple acquires during their marriage is marital. One method for categorizing property as marital or separate is to apply the Missouri source of funds rule. This rule can be applied to determine whether a property item is entirely marital or perhaps only partly marital and to what extent.

Missouri Source Of Funds Rule

Section 452.330.2(2) RSMo. refers to the Missouri source of funds rule. The source of funds rule provides that where one spouse uses property that was his or hers before the marriage to acquire property after the marriage, the property acquired after the marriage remains the separate property of that spouse.

The court must determine whether the money used to pay for the property came from separate or marital funds. The property is then allocated to separate and/or marital property categories in proportion to the percentage that the fund’s source was marital or separate. The burden of proof is on the party claiming the separate nature of the property. This must be shown by clear and convincing evidence. Mere conclusory testimony of one party, without corroboration, will not satisfy the required threshold of proof. Reed v. Reed, 762 S.W.2d 78 (Mo. App. S.D. 1988).

A Lawyer to Help with Property Division

Are you seeking a divorce in Missouri? The Poplar Bluff divorce attorneys at Kennedy, Kennedy, Robbins & Yarbro, LC, are available to help. Contact our office or call us at (573)686-2459 to learn more about your legal options and to see how our firm can assist you with your family law matter.