In marriage, it is not just your lives that intertwine but often your finances as well. This blending of assets, known as commingling, could have significant implications if you ever face divorce. Understanding how commingling works and its potential impact on property division is crucial.
What is commingling?
Commingling refers to the mixing of separate property with marital property. For instance, perhaps you owned a house before marriage, and your spouse contributed to mortgage payments during your marriage. That property may become partially commingled. Similarly, if you deposit inheritance money into a joint account, it could lose its separate status.
The process might be gradual and often unintentional. You might not realize it happens until you face property division during a divorce.
How does commingling affect property division?
When it comes to divorce, commingled assets could complicate matters significantly because of:
- Blurred lines: Once you commingle assets, it might become challenging to distinguish between separate and marital property. This ambiguity could lead to disputes during property division.
- Potential loss of separate property: If you cannot clearly prove which portion of an asset was originally yours, you might risk losing it entirely in the division process.
- Complex valuation: Determining the value of commingled assets could be intricate. It might require professional appraisals or forensic accounting.
To protect your interests, consider keeping detailed records of your separate property and any contributions made to shared assets. If you are concerned about commingling, consider exploring options such as prenuptial agreements. Also, consider maintaining separate accounts for inherited or pre-marital funds.
Laws regarding property division vary by state, so it is crucial to understand your local regulations. Consider seeking legal advice. An attorney could guide you through your local laws and your options.