Property division is a necessary component of a divorce. Couples will have purchased assets and earned income while they were married, and these assets are shared jointly. Therefore, as they end their marriage, they have to determine how to split them up.
But not everything counts as a marital asset. There are some assets that may qualify as separate assets, meaning only one person claims them and they do not have to be divided. This could include direct gifts, such as an inheritance, as well as assets that either person purchased before the marriage and then brought into it later on.
Changing the status
Commingling, or the act of mixing assets together, is something that can cause them to change status or classification. This can have a dramatic impact on property division, and it sometimes leads to disputes.
For instance, if a person initially received a personal inheritance from their parents, it may be a separate asset. But if they deposit the money into a joint bank account with their spouse, they have commingled it with marital funds.
Usually, the court will look at the entire account as a marital asset, meaning the inheritance has switched status and now does need to be divided. If that person had instead kept it in a personal account that only they were able to access, it may have retained its status as a separate asset.
Navigating a complicated divorce
As noted, this can often lead to disputes and can make the property division process more complicated. Those who are going through this process need to know exactly what legal options they have.