Dividing assets is a very important part of divorce, and it starts by classifying those assets correctly. Separate assets are often those that people owned before the marriage, and they may not be subject to property division. Marital assets are those that the couple obtained together, even if only one spouse was primarily responsible, so they are typically subject to property division in a divorce.
However, the category that an asset fits into is not necessarily set in stone. It can be changed, and one way to do this is through commingling.
Shared or mixed assets
Essentially, commingled assets are those that have been mixed together or shared between spouses. For example, say that a man has $50,000 in the bank when he gets married. If he keeps that money in a personal bank account and never shares it with his spouse, it is likely a separate asset. Even if he gets divorced, he gets to keep the $50,000 because he had it before the marriage.
However, say that the couple combines their bank accounts when they get married. The man transfers the $50,000 into this new shared account, which his spouse is able to access. This account is used to pay the bills, buy a home and address other joint expenses. This commingles the money so that it may become a marital asset that has to be split according to California’s community property laws, even though he had it prior to the marriage.
As you can imagine, this can be a contentious area, and couples may disagree on the status of certain assets. Having experienced legal guidance can help protect a spouse’s rights as they divide their assets during their divorce.