Commingling
Mixing separate property with marital property in a way that makes it difficult or impossible to distinguish between the two. Commingled assets may be treated as marital property.
Understanding Commingling
Commingling occurs when one spouse deposits an inheritance into a joint bank account, uses separate funds to pay for marital expenses, or adds a spouse's name to a pre-marital asset. Once separate property is commingled with marital property, it can lose its separate character and become subject to division. The burden of tracing the separate funds back to their source falls on the spouse claiming them. Forensic accountants may be needed to trace commingled funds through years of transactions.
Real-World Examples
The wife inherited $50,000 but deposited it into the joint checking account, commingling it with marital funds and potentially making it divisible.
Related Terms
A property division system used in nine states where all assets and debts acquired during the marriage are owned equally (50/50) by both spouses.
Equitable DistributionA property division system used by most states where marital assets and debts are divided fairly, though not necessarily equally, based on multiple factors.
AssetAny property or item of value owned by either or both spouses that is subject to division in a divorce. Assets include real estate, bank accounts, investments, retirement funds, businesses, and personal property.
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This definition is provided for educational purposes only and does not constitute legal advice. Divorce laws and terminology may vary by state and jurisdiction.
Always consult a licensed attorney in your area for advice specific to your situation.