Asset commingling occurs when separate property, such as money owned by one spouse before the marriage, becomes mixed with marital property subject to division during divorce. This often happens in everyday life.
For instance, you might have deposited your inheritance money into a joint bank account or used your savings to renovate the family home you own as a couple. Over time, it can be difficult to distinguish what belongs to whom, potentially leading to complications when dividing property in a divorce.
The challenges of commingled assets
When it’s unclear which assets are separate and which are marital, there is an increased risk of conflicts during divorce proceedings. You may feel that certain assets are not fully marital since you contributed or invested personal funds, while your spouse may have a different opinion. This disagreement can create tension and prolong the divorce process.
The law in Illinois
If you cannot agree on how to handle commingled assets, the court will decide the way forward based on the specifics of your situation. Typically, commingled assets will be treated as marital property and split accordingly if your separate contributions cannot be traced.
However, if you can trace your contribution to the commingled assets, the court may determine that your contributions remain separate property.
Take proactive steps to safeguard your financial interests
Financial documentation is key to securing a fair divorce settlement and navigating such complexities. Keep thorough records of all financial transactions that show how assets were acquired or used. Having a paper trail can go a long way in untangling commingled assets.
Seeking legal guidance is equally crucial. It can help you understand your rights, explore options toward a favorable resolution and protect your interests throughout the divorce proceedings.