When getting divorced, the first thing to know about property division is that assets can generally be divided into two categories. First, there are separate assets, which are owned only by one individual and do not have to be divided. Second, there are marital assets, which are owned jointly and typically need to be divided during the divorce.
For instance, if someone received an inheritance from their parents or brought money to the marriage, it is likely a separate asset. On the other hand, if a couple bought a home together, that is typically a marital asset that will have to be divided. The same is true for income earned during the marriage.
Mixing assets together
When assets are mixed, it is known as commingling. Perhaps the person who received the inheritance deposits it in a joint bank account, for example, mixing it with marital income. Perhaps they use the money that they saved before the marriage as a down payment for a home they purchase jointly with their new spouse.
Often, commingling changes the classification of that asset. If a person kept an inheritance separate from any marital assets, they may be able to keep the entire amount during a divorce. But if they keep it in a shared bank account, used it to buy marital assets or otherwise shared it with their spouse, then they may need to divide it during the property division portion of their divorce.
Conflicts over the status of assets are common during divorce. When addressing property division and all other legal aspects, it is important for couples to know exactly what legal rights and obligations they have.
