Commingling could turn separate assets into marital ones

Commingling could turn separate assets into marital ones

| Apr 13, 2020 | Asset Division, Divorce |

Many Kentucky residents may be considering the possibility of divorce. As they contemplate unraveling their assets and debts, they may be under the impression that certain separate assets remained that way throughout the marriage. However, it is possible that those assets were commingled during the marriage, which could make them part of the marital estate and subject to division.

Determining whether this happened to a certain asset requires some investigation. For instance, if marital assets are used to improve a separate asset, at least part of that separate property becomes part of the marital estate. If a Kentucky resident fails to keep his or her property owned prior to marriage separate from that acquired during the marriage, it could be considered commingled.

Some couples will add each other’s names to their property. This converts it from separate property to marital property. Even making payments on a mortgage loan for a home owned by one spouse prior to the marriage with marital funds could make it an asset subject to division in a divorce. Unless the parties entered into a prenuptial agreement identifying separate property and then kept that property separate, it will most likely be fair game in a divorce – or at least part of it depending on the asset.

If there is a question regarding whether separate assets were somehow commingled, it would be worthwhile to find out prior to the property division portion of the divorce process. Unless the facts are irrefutable, each side could present a different and plausible scenario as to whether a certain asset became part of the marital estate. If the parties cannot come to an agreement regarding that asset outside the courtroom, it may be necessary to have a judge decide.