ACQUIRED PROPERTY

2 definitions found across Law Mind sources

ACQUIRED PROPERTYAuthored
The Law Mind • 920 words
Definition
Acquired property refers to property that comes into a person's or entity's ownership or possession through some act or transaction, as distinguished from property held by inheritance, devise, or original grant. The term functions primarily as a descriptive label rather than a term of art with a fixed technical definition, and its legal significance depends almost entirely on context. In secured transactions and commercial law, "after-acquired property" is the operative form of the concept: property a debtor acquires after a security agreement is executed, which may be swept into the collateral base if the agreement contains an after-acquired property clause. This is the most legally consequential use of the term in modern practice. In property law generally, "acquired property" may describe any asset obtained through purchase, gift, exchange, or other voluntary transfer — contrasted with property received by operation of law or succession. In family law and community property contexts, "acquired property" describes assets obtained during a marriage or domestic partnership, often as a shorthand for property subject to equitable division upon dissolution. ---
Common Confusion
"Acquired property" and "after-acquired property" are often used interchangeably in commercial law contexts, but they are not identical. "Acquired property" is the broader, more neutral descriptor — it simply means property that has come into one's ownership. "After-acquired property" is a specific legal doctrine in secured transactions, referring to property obtained after the attachment of a security interest, and carries defined rules under Article 9 of the Uniform Commercial Code regarding enforceability against third parties and trustees in bankruptcy. Researchers should be precise: a security agreement covering "all acquired property" may be interpreted differently than one explicitly invoking an after-acquired property clause. ---
Why It Matters in Research
The term's meaning shifts substantially depending on the body of law you are in. A researcher must anchor the term to its context before drawing conclusions from any source. In secured transactions research, the after-acquired property dimension is where the action is. The enforceability of after-acquired property clauses against bankruptcy trustees — particularly for inventory and accounts receivable — was contested territory for much of the twentieth century before Article 9 codified the framework. Pre-UCC sources, including Bouvier's era materials, will reflect doctrines hostile to "floating liens" on property not yet owned at the time of the agreement. Do not carry those older limitations forward into modern analysis without checking whether UCC adoption resolved the question in the jurisdiction at issue. In family law research, the term appears in community property states as a rough synonym for marital property or community property — but the precise definition of what is "acquired" during marriage (as opposed to separate property brought in or inherited) varies by state statute and case law. The term alone will not tell you which assets are included. In employment law, the related concept of after-acquired evidence — evidence of employee misconduct discovered after a wrongful termination — operates on entirely different logic. It does not involve property acquisition at all; it affects the remedy calculation in discrimination cases. A search for "acquired" evidence in employment law databases will surface this doctrine, and researchers should distinguish it cleanly from property acquisition concepts. Historical sources, including Bouvier's, use the term in passing rather than defining it as a standalone entry. Bouvier's references to acquired property appear in the context of railroad mortgage law and creditor remedies — a specialized nineteenth-century commercial context in which the integrity of railroad assets as a going concern was the animating concern. That context does not translate directly to modern commercial or property law without substantial updating. ---
Historical Dictionary Support
Bouvier's Law Dictionary does not offer a standalone definition of "acquired property." The term appears in Bouvier's in discussion of railroad mortgage law, where the question was whether creditors could attach portions of a railroad's property — including property acquired after the original mortgage — or whether such attachment would impermissibly disintegrate a railroad as a going concern. The passage reflects a broader nineteenth-century tension between individual creditor rights and the quasi-public character of railroad enterprises. What Bouvier's treatment reveals is that "acquired property" in that era was understood primarily in the context of what a debtor brought into existence or obtained after a prior encumbrance attached — and that courts were developing rules about priority and enforceability in a largely case-by-case fashion. The systematic treatment of after-acquired property as a recognized commercial doctrine, with defined rules about attachment, perfection, and priority, came later with the development and adoption of the UCC. Bouvier's does not address the family law or employment law dimensions of the concept, which are products of later statutory and doctrinal development. ---
Jurisdictional Note
In community property states (including California, Texas, Arizona, Nevada, and Washington), "acquired property" during marriage carries a presumption of community character, affecting division upon divorce or death. In common law states, the term carries no such presumption, and division of marital assets depends on equitable distribution principles. In commercial law, UCC Article 9 governs after-acquired property clauses across all adopting jurisdictions, but pre-UCC case law in each state may still be relevant for interpreting transactions predating adoption. ---
Related Terms
After-Acquired Property Clause; Floating Lien; Security Interest; Collateral; Attachment (Security Interest); Community Property; Marital Property; Separate Property; After-Acquired Evidence; Proceeds; Perfection
ACQUIRED PROPERTYmain
Bouvier's Law Dictionary • 1928
And if property was fraudulently acquired. the vendor may rescind as against the mortgagee. Another rule resting upon the quasi- public character of a railroad is that which prohibits creditors from levying an attach- ment or execution upon the railroad, or parts of it, even subject to the mortgage. To permit such action would be to permit the disintegration of the railroad and the destruction of the power to discharge the public obligation of the corporation. Foreclosure. The mortgage or deed of trust contains provisions for enforcing the rights of bondholders in case of default of the mortgagor. It usually provides for (1) Entry by the trustee. This is seldom now resorted to, since by operating the prop- erty, the trustee becomes liable as the mortgagor would have been, and as default implies that the property has been operated at a loss, the trustee will seldom consent to exercise this right, and never unless sufficiently indemnified by the bondhold- ers. (2) Trustee's sale of the property after prescribed advertisement, which is seldom resorted to. (3) The usual meth- od of procedure is by a bill of fore- closure, usually accompanied by a prayer for a receiver (see supra; RECEIVERS) and for the establishing of liens or claims against the property. No provision in the mortgage can exclude the right of a trustee to apply to a court of equity for foreclosure. The provision usually found that a majority of the bond- holders may by an instrument in writing waive the right to declare that a default has occurred will be sustained by the court, though such provision is not favored, as being inimical to the rights of a minority. Provisions unreasonably limiting the right to foreclose are void. When a provision required the request of one-fourth of the bondholders to compel the trustee to begin foreclosure, the fact that three-fourths of the bonds were held by a company oper- ating the mortgagor company was held to justify action by a single bondholder; 73 Fed. Rep. 320. In case the trustee refuses to act, a bondholder may bring suit for foreclosure on behalf of himself and such others as may join; 74 Fed. Rep. 67; 77 id. 525; in such case the refusal of the trustee must be set out and the trustee should be made a party defendant; 79 Fed. Rep. 25; 80 id. 569. If a single bondholder has the right to institute proceedings he is bound to act for all standing in a similar position; 143 U. S. 42. See PARTIES. Railroad foreclosure suits are begun generally in the federal courts, thus secur-

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