Engagement ring and insider trading

[wick246]

Hello all,

I bought my wife an engagement / wedding ring in December 2009 and paid cash. We were married in April and I am unfortunately having to file (hopefully August 2010) to save our financial future. The ring was $1850 new and only I am filing. If we qualify for a Chapter 7 are they going to consider the ring an asset of mine and try and take it? It doesn't seem to be an allowed exemption for Utah. I guess the question is - is the ring now considered my wifes asset or mine considering insider trading rules?

Thank you.

[Aledrell]

You need to check your states exemptions. For example here in AZ there is a specific engagement/wedding ring exemption of up to $1000. Now weather or not the ring is yours or hers depends on weather or not you live in a community property state. If you don't than it's hers, if you do than it's half yours. Become very familiar with your states or federal exemptions list all that apply.........and also I think the preferrancial transfer or gift etc is 6 months prior to filing, but I'm not 100% sure.......so if pushed into a corner don't use your marriage date use you engagement date as the day you gave it to her.........see if you can chose between federal or state exemptions ...I know fed has 1150 jewelry exemption

[tcreegan]

Utah exemptions

Hi Wick,

Utah has a $500 exemption for "heirlooms and other things of sentimental value"

I am also not sure if Utah is a state where you have to use their exemptions or a state where you can pick state or federal. I think the federal exemptions are going to be much better than the Utah state exemptions.

Also necessary to find out if Utah is community property state or not. If it is a comm prop state, find out if things pre-marriage are held in common or seperate unless the spouse is specifically added.

The danger of one spouse filing is that any debts with both names or held in common property become the liability of the non-filing spouse. One spouse is off the hook, but now the other owes the whole amount.

Just some thoughts...

Tom in Colo

[LadyInTheRed]

The danger of one spouse filing is that any debts with both names or held in common property become the liability of the non-filing spouse. One spouse is off the hook, but now the other owes the whole amount.

Only if the non-filing spouse has separate property. In a community property state, the discharge of a community property debt in one spouse's BK is effective against all of the community property. A creditor can only go after the non-filing spouse's separate property to pay the discharged debt.

[tcreegan]

good to know

That is good to know, LadyinRed, I thought it was the other way around....maybe I need to be more optimistic!

Tom in Colo