Marital assets need to go through property division during a divorce. But not everything that a couple owns qualifies as a marital asset. Some may count as separate assets, meaning one spouse owns them independently and they do not need to go through property division.
One example is an inheritance that a spouse was given directly by their parents. Even if they were already married at the time, this may still count as a separate asset. Another example is when one person brought significant assets to the marriage, such as savings that they had put aside before getting married.
What does it mean to commingle assets?
Commingling assets is the process of mixing them together. Separate assets get mixed in with marital assets. This can change their status so that all of those assets now have to go through property division.
To stick with the example of an inheritance, imagine that a person creates a personal bank account where they store the funds from their parents. Since it is only in their name, and they are the only one who can access it, it likely maintains its status as a separate asset.
But if the person instead puts the inheritance into the joint bank account that they already opened with their spouse, it blends together with other marital assets, like their savings or income. This can complicate the process because the entire account may qualify as a marital asset that needs to be split up.
Often, couples who are going through a divorce get into serious debates over what assets qualify for property division and which ones remain separate assets. While navigating this process, those involved need to know what legal steps to take.
