Protecting Separate Property in Nevada

Nevada is a community property state—courts must make an "equal disposition" of community property under NRS 125.150. However, separate property remains protected: assets you owned before marriage, plus gifts, inheritances, and personal injury awards, stay yours under NRS 123.130. Whether you're navigating an uncontested or contested divorce, understanding Nevada's tracing requirements and community property rules is essential.

Nevada's Community Property System

Under NRS 123.220, all property acquired after marriage by either spouse is community property unless displaced by a written agreement. The default rule:

• 50/50 division: Community property is divided equally unless the court finds "compelling reasons" to deviate
• Equal interests: Both spouses have present, existing, and equal interests in community property
• Compelling reasons are narrow: Financial misconduct (waste, secreting assets) justifies unequal division—not general marital fault

What Qualifies as Separate Property

Under NRS 123.130, separate property includes:

• Premarital property: Assets owned before the marriage
• Gifts and inheritances: Property received by gift, devise, bequest, or descent during marriage
• Personal injury awards: Damages awarded to the injured spouse
• Rents, issues, and profits: Income from separate property remains separate

Critical rule: The spouse claiming separate property bears the burden of proof by clear and convincing evidence. Title recitals alone ("sole and separate") are insufficient—you must trace the purchase funds to a separate source.

Community Continues Until the Decree

Unlike many states, Nevada's community does not end when you separate. Under Forrest v. Forrest (1983):

• Earnings remain community: Wages earned after separation but before the decree are community property
• Acquisitions remain community: Assets purchased post-separation are still community
• Written agreement required: Only a written spousal agreement, separate maintenance decree, or NRS 123.190 authorization can change this

This means if you earn income or acquire assets after separating but before your divorce is final, your spouse has a community interest in them.

Tracing Methods Nevada Accepts

Nevada courts accept multiple tracing methods to prove separate character:

• Direct tracing: Bank records showing specific separate funds purchased the asset
• Exhaustion/family expense method: Prove community income was exhausted by living expenses at the time of purchase, so the asset necessarily came from separate funds
• Malmquist formula: For real estate with mixed payments (see below)
• Pereira/Van Camp: For separate businesses where community labor contributed to growth

Commingling warning: Once funds are mixed, the community presumption "gains strength"—comprehensive records are essential.

The Malmquist Formula for Mixed-Payment Homes

Nevada's Malmquist v. Malmquist (1990) adapts California's Moore/Marsden formula for homes purchased on credit with both separate and community funds:

• Reimburses each estate: For principal payments made
• Allocates appreciation: Proportional to each estate's contribution (including outstanding loan credit)
• Joint tenancy exception: If property is held as joint tenancy, separate contributions are reimbursed dollar-for-dollar only—no appreciation share (NRS 125.150(2))

Example: If your separate premarital down payment was 20% of the purchase price and the community made the remaining payments, you receive your principal back plus approximately 20% of the appreciation.

Estimate Your Nevada Divorce Costs

Property disputes involving tracing and Malmquist calculations can increase legal costs. Nevada filing fees are approximately $284. Use our calculator to estimate your total expenses:

Protection Strategies

• Maintain separate accounts: Keep premarital and inherited funds in accounts in your name only
• Document every transaction: Preserve bank statements, closing documents, and wire confirmations
• Avoid title changes: Adding your spouse to title creates a gift presumption rebuttable only by clear and convincing evidence
• Get written agreements: A prenuptial or postnuptial agreement can protect separate property
• Consider a legal separation decree: This formally ends the community before final divorce
• Track separate contributions: If using separate funds for community purchases, document the source

Key Takeaways

• Community property state: 50/50 division of community assets is the default
• Separate property protected: Premarital, gifts, inheritances, and personal injury awards (NRS 123.130)
• Community continues until decree: Separation alone doesn't end community interests
• Clear and convincing evidence: Title alone is insufficient—must trace funds
• Malmquist for mixed homes: Proportional appreciation allocation
• Joint tenancy reimbursement only: No appreciation share for separate contributions

For the complete Nevada community property guide and divorce timeline, see our detailed resources. For official forms, visit the Nevada Courts Self-Help Center.