Protecting Separate Property in Maine

Maine is an equitable distribution state with a unique twist—there's no presumption of 50/50 division. Under 19-A M.R.S. § 953, courts divide marital property "in proportions the court considers just" after weighing statutory factors. The good news: Maine protects passive appreciation on separate property. Whether you're navigating an uncontested or contested divorce, understanding Maine's classification rules is essential.

Maine's Equitable Distribution Approach

Unlike states that presume equal division, Maine courts have broad discretion:

• No 50/50 presumption: "Equitable" means just, not necessarily equal
• Factor-based analysis: Courts consider contributions, economic circumstances, and property set aside
• Economic abuse factor: Added in 2023 under § 953(1)(D)
• Weighted distributions: Courts may award more to one spouse instead of spousal support

As the Law Court has stated: "The Court is not compelled to divide the marital estate equally, and a Court which automatically does so could be in error."

Nonmarital Property Exceptions

Under § 953(2), certain property is set apart as nonmarital:

• Gifts and inheritances: Property acquired by gift, bequest, devise, or descent
• Premarital property: Assets owned before marriage
• Exchange property: Property acquired in exchange for premarital or gifted assets
• Post-judicial separation: Property acquired after a decree of judicial separation
• Agreement-excluded: Property excluded by valid prenuptial agreement

The Passive Appreciation Rule (1999 Amendment)

Maine's 1999 amendment to § 953(2)(E) provides crucial protection:

• Passive increases are nonmarital: Market appreciation and reinvested dividends/capital gains remain separate
• Unless substantial active role: If either spouse had a substantial active role in managing/improving the property, that appreciation becomes marital
• Warner confirmation: Warner v. Warner confirmed passive reinvestment is nonmarital absent substantial active management

Example: If you inherited $200,000 in stocks that grew to $380,000 through market gains and automatic dividend reinvestment—with no active trading—the entire $380,000 remains nonmarital.

Long/Carter Transmutation: Joint Titling = Marital

Under Long v. Long and Carter v. Carter, joint titling creates a strong marital presumption:

• Joint tenancy with spouse: Real estate held jointly is marital regardless of funding source
• Gift to marital estate: Interspousal transfer into joint tenancy evidences intent to gift
• Contribution still matters: Source of funds affects distribution, not classification

Critical warning: If you use premarital funds to buy a home but title it jointly with your spouse, the entire property becomes marital. Your contribution may justify a larger share in distribution, but you cannot carve out a "nonmarital" portion.

The Tracing Burden: Prove It or Lose It

Maine places the burden squarely on the claiming spouse:

• You must prove nonmarital status: Failure to trace results in marital classification
• Commingling defeats claims: If assets are inextricably mixed, they become marital
• Documentation is essential: Bank statements, brokerage records, closing documents

Cases like Stevenson v. Stevenson and Kapler v. Kapler show that incomplete records or failed tracing leads to marital classification by default.

Estimate Your Maine Divorce Costs

Property classification disputes involving tracing and appreciation can increase legal costs. Use our calculator to estimate your total expenses:

When Appreciation Becomes Marital

Under Sewall v. Saritvanich and Williams v. Williams, appreciation can become marital when:

• Marital funds pay down debt: Principal reduction on separate property creates marital equity
• Improvements with marital money: Renovations funded by marital resources become marital appreciation
• Substantial active management: Active trading or business involvement makes gains marital

Protection Strategies

• Never title jointly: Keep separate property in your name alone to avoid Long transmutation
• Maintain separate accounts: Don't deposit marital funds into inherited/premarital accounts
• Document everything: Keep bank statements, brokerage records, and closing documents
• Avoid active management: Let investments grow passively to preserve nonmarital status
• Pay expenses separately: Use separate funds for taxes, maintenance, and improvements on separate property
• Consider prenuptial agreements: § 953(2) recognizes valid agreement exclusions

Key Takeaways

• No 50/50 presumption: Courts divide property "justly," not necessarily equally
• Passive appreciation protected: Market gains and reinvestment stay nonmarital (Warner)
• Joint titling = marital: Long/Carter transmutation applies regardless of source
• Tracing burden on claimant: Failure to prove nonmarital = marital by default
• Commingling defeats protection: Keep separate property segregated
• Active appreciation is marital: Substantial involvement or marital contributions create marital interests

For the complete Maine marital property guide and divorce timeline, see our detailed resources. For official forms, visit the Maine Courts Divorce & Family Separation page.