Commingled assets present one of the most complicated aspects of property division in a divorce. These assets, which are a blend of separate and community property, can blur ownership and create confusion during the division process.
For instance, if one spouse had a retirement account before the marriage and contributed to it with income earned during the marriage, the account could have both separate and marital portions. Similarly, if one spouse owned a home before the marriage but both spouses contributed to mortgage payments or renovations, it may be partly considered marital property.
Here are the steps to address this issue and protect your financial interests during your divorce.
Identify and separate commingled assets
The first thing you ought to do is identify which assets are commingled. It could be real estate property, savings accounts or investments. Once identified, the goal is to separate the personal and marital interests by demonstrating how they became mixed. Without this clear distinction, commingled assets will be dealt with like other community property and subject to equal division.
Gather financial records
Separating commingled assets relies heavily on financial documentation to trace the source of funds. Bank statements, receipts and other relevant financial records can provide the necessary evidence to help your case. For complex financial situations, it’s best to consider engaging financial experts to help unravel commingled assets.
Remember, the clearer your documentation, the stronger your position will be when negotiating for a fair asset division or presenting your case in court.