During property division in a divorce, two general categories of assets must be discussed: those belonging to the marital estate and those that are separate. Separate assets are those that you brought into the marriage, such as an inheritance you received, a home you already owned, a business you already started or savings.
Marital assets are typically the things you and your spouse have acquired jointly, such as a home you bought together or your income from the jobs you worked during your marriage. This is an important distinction to make because marital assets need to be divided in a divorce, while separate assets do not.
However, some assets may be a cross between the two, due to commingling.
How commingling crosses boundaries
Commingling assets means mixing them together. This can change their status, so that a separate asset can become a marital asset, meaning that it now has to go through the property division process and both halves of the couple may be entitled to a portion.
For instance, say that you saved $50,000 before getting married. This is initially a separate asset. But if you store it in a joint bank account with your spouse’s name on it, then that would become a marital asset. If you use it as a down payment on a home that you and your spouse buy together, the home will then qualify as a marital asset. This is known as commingling funds, and it may mean that you cannot retain the entire $50,000 if you get divorced. If it becomes a marital asset, you have to split it with your spouse.
Defining assets is very important, and property division can be complicated, so take the time to carefully look into your legal options.