What are commingled assets in a divorce? 

On Behalf of | Feb 2, 2025 | Family Law

If you get divorced, the two main categories for assets are marital assets and separate assets. If something is a marital asset, both you and your spouse have a right to it, meaning it must go through property division. If something is a separate asset, it belongs solely to either you or your spouse and does not need to be divided—you simply keep it.

However, it is also possible to commingle assets. This is important to note because commingling can change an asset’s classification. Below are two examples of how this can happen.

Making a joint purchase

Suppose your parents leave you an inheritance of $200,000. Initially, this is a separate asset because it was given directly to you, possibly even before you got married. 

However, if you and your spouse use the $200,000 to buy a home together, the asset becomes commingled. You cannot claim sole ownership of the house during the divorce simply because the money originally belonged to you. A jointly owned home is a marital asset, meaning you both have a right to it, and it must go through property division.

Using the same accounts

Commingling can also occur without making a purchase. For example, if you deposit the $200,000 into an investment account shared with your spouse—where you are both saving for retirement—this also mixes the assets. As a result, you may have to divide the entire account. Since you gave your spouse access to the funds and the ability to use them for shared investments, the money becomes a marital asset.

The classification of assets can be complex and sometimes contentious during a divorce, so be sure you understand the legal steps you need to take.

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