TABLE OF CONTENTS
Page
1. INTRODUCTION ............................................................................................................................................. 4
2. OVERVIEW OF WISCONSIN'S MARITAL PROPERTY LAW ................................................................................... 4
A. What is Wisconsin's Marital Property Law? ........................................................................................................................ 4
(1) What is a "common law property system?" ............................................................................................................... 5
(2) What is a "community property system?" .................................................................................................................. 5
B. When Does Wisconsin's Marital Property Law Apply? ....................................................................................................... 5
(1) What is the "determination date?" ............................................................................................................................. 5
(2) What is a "domicile?" .................................................................................................................................................. 6
C. How does Wisconsin's marital property law classify property? .......................................................................................... 6
(1) What is "marital property?" ........................................................................................................................................ 6
(2) What is "individual property?" .................................................................................................................................... 7
(3) What is "unclassified property?"................................................................................................................................. 7
(4) What happens if marital property is mixed with other property? .............................................................................. 7
(5) How are retirement benefits classified? ..................................................................................................................... 8
D. Can Married Persons Change the Classification of Property? ............................................................................................. 8
(1) What is a "marital property agreement?" .................................................................................................................. 9
(2) What is a "unilateral statement?" ............................................................................................................................. 10
E. How are Debts Treated under Wisconsin's Marital Property Law? .................................................................................. 10
3. FIGURING YOUR WISCONSIN INCOME TAX UNDER WISCONSIN'S MARITAL PROPERTY LAW .......................... 10
A. Filing Status ....................................................................................................................................................................... 10
(1) Joint return ................................................................................................................................................................ 11
(a) Divorced taxpayers ........................................................................................................................................... 11
(b) Separate returns after joint return ................................................................................................................... 12
(2) Separate returns ....................................................................................................................................................... 12
(a) Joint return after separate returns ................................................................................................................... 12
B. Income Under the Marital Property Law .......................................................................................................................... 13
(1) Marital property income ........................................................................................................................................... 13
(2) Individual income ...................................................................................................................................................... 13
(3) Income earned by separated or divorced spouses ................................................................................................... 14
(a) Separated spouses ............................................................................................................................................ 14
(b) Divorced spouses .............................................................................................................................................. 14
(4) Exceptions to reporting income under the marital property law for Wisconsin tax purposes ................................. 14
(a) Marital property agreements and unilateral statements ................................................................................. 14
(b) Part-year residents and nonresidents .............................................................................................................. 15
(c) Innocent spouse rule ........................................................................................................................................ 15
(5) Differences between federal and Wisconsin reporting of marital property income ................................................ 16
C. Losses, Expenses, Deductions, and Credits ....................................................................................................................... 17
(1) Capital losses ............................................................................................................................................................. 17
(2) Other losses ............................................................................................................................................................... 18
(3) Business and investment expenses ........................................................................................................................... 18
(4) Individual retirement arrangements and self-employed retirement plans .............................................................. 18
(5) Alimony ..................................................................................................................................................................... 18
(6) Deduction for exemptions ........................................................................................................................................ 20
(7) Wisconsin itemized deduction credit ........................................................................................................................ 20
(8) Renter's school property tax credit ........................................................................................................................... 20
(9) Homeowner's school property tax credit .................................................................................................................. 20
(10) Married couple credit................................................................................................................................................ 21