Senate Study Bill 3166 - Introduced SENATE FILE _____ BY (PROPOSED COMMITTEE ON JUDICIARY BILL BY CHAIRPERSON ZAUN) A BILL FOR An Act relating to orders of disposition of certain property 1 of a party to the marriage in an annulment, dissolution, or 2 separate maintenance proceeding. 3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 4 TLSB 5786XC (1) 87 pf/rj
S.F. _____ Section 1. Section 598.21, subsection 6, Code 2018, is 1 amended to read as follows: 2 6. Inherited and gifted property. Property inherited by 3 either party or gifts received by either party prior to or 4 during the course of the marriage is the property of that party 5 and is not subject to a property division under this section 6 except upon a finding that refusal to divide the property 7 is inequitable to the other party or to the children of the 8 marriage as provided in this subsection . Any increase in the 9 value of inherited or gifted property, attributable to passive 10 growth of or appreciation to the inherited or gifted property 11 which does not result from the contributions or efforts of 12 both parties or the use of marital assets during the course of 13 the marriage, remains the property of the inheriting party and 14 shall not be considered in the property division. 15 Sec. 2. Section 598.21, Code 2018, is amended by adding the 16 following new subsection: 17 NEW SUBSECTION . 9. The court shall not consider the 18 division of property under this section in the awarding of 19 attorney fees. 20 EXPLANATION 21 The inclusion of this explanation does not constitute agreement with 22 the explanation’s substance by the members of the general assembly. 23 This bill relates to the treatment of property inherited or 24 gifted to a party to a marriage for the purposes of property 25 division in an annulment, dissolution, or separate maintenance 26 proceeding. The bill eliminates the provision that allows the 27 court to divide the inherited or gifted property upon a finding 28 that refusal to divide the property is inequitable to the other 29 party or to the children of the marriage. 30 The bill distinguishes between active and passive growth 31 of or appreciation to property inherited or gifted to a 32 party during the course of the marriage by providing that 33 any increase in the value of inherited or gifted property, 34 attributable to passive growth of or appreciation to the 35 -1- LSB 5786XC (1) 87 pf/rj 1/ 2
S.F. _____ inherited or gifted property which does not result from 1 the contributions or efforts of both parties or the use of 2 marital assets during the course of the marriage, remains the 3 property of the inheriting or receiving party and shall not be 4 considered in the property division. 5 The bill also provides that the court shall not consider the 6 division of property in the awarding of attorney fees. 7 -2- LSB 5786XC (1) 87 pf/rj 2/ 2