Commingled assets are either marital assets, or separate property that has essentially transformed into marital assets due to being mixed together with marital property. This transformation can change their status in important ways while a couple goes through property division.
The main categories for assets are separate assets and marital assets. A marital asset must be divided during a divorce, but couples sometimes have the legal right to keep their separate assets. Commingling them, or mixing them together, can turn a separate asset into a marital asset.
When money enters a marriage
For example, say that you had $100,000 of your own money when you and your spouse got married. Money that you earned after the marriage is going to qualify as a marital asset, and many couples deposit their income into a shared bank account.
If you kept the $100,000 in your own bank account and did not share it with your spouse, you may be able to claim that it is a separate asset in the event of divorce. That account is yours alone, you earned it before you were even married, and you should keep the full funds.
But if you deposited that $100,000 in your joint bank account with your spouse, where both of you had access to the funds, used them to pay the bills and deposited your future earnings, you have commingled the account. That bank account itself may qualify as a marital asset, meaning you have to split everything with your spouse, even the money that you earned prior to the marriage.
This can also happen with an inheritance. Initially, an inheritance given to you by your parents, even during the marriage, often qualifies as a separate asset. But storing it jointly, sharing it with your spouse or using it to purchase shared assets commingles that inheritance.
Issues like this can certainly complicate property division, and disputes sometimes arise about how assets should be classified. Take the time to carefully look into your legal rights if you’re getting divorced, in order to better ensure that you receive a just settlement.