Marital Separate Property 

There are three types of property that are not subject to division at time of divorce, and only one of them is completely off the table.

Generally, property brought into the marriage is considered a capital contribution, and the party who contributed it is entitled to a credit for its value at the time of divorce.

Likewise, gifts and inheritances during the marriage are considered capital contributions and credited to the recipient.

But any appreciation in value of either or these types of property is subject to division at time of divorce, and the court may have the discretion to allocate some or all of the value of the capital contribution to the other spouse.

The last category is not favored by the courts, but it is the safest way to protect not only the value at date of marriage or date of receipt of gift or inheritance, but also any appreciation in its value during the course of the marriage.  This is called Marital Separate Property.

In order to prove that an asset is Marital Separate Property, the litigant must show a valid prenuptial agreement, a valid contract excluding the property from the marital estate (postnuptial agreement), or that the property 

"(1) was acquired by the spouse-owner during the marriage by gift or inheritance; (2) was expressly classified by the donee/heir-spouse-owner as his or her separate property; and (3) after acquisition, was maintained by itself and/or sources other than one or both of the spouses and funded by itself and/or sources other than marital partnership income or property." 77 Hawai'i 202, Hussey v. Hussey, 881 P.2d 1270 (Haw. App. 1994).

Few people are thinking about divorce when they are getting married, but many people live to regret failing to execute a valid prenuptial or postnuptial agreement!