When you go through a divorce, one of the first steps is to disclose to the court what assets you own jointly. Some assets are marital assets, meaning you and your spouse need to split them up. Others may qualify as separate assets, meaning that you own them and do not necessarily have to divide them with your former spouse.
Commingled assets, on the other hand, are assets that have been mixed together. This can cause them to switch categories from being a separate asset to being a marital asset.
An inheritance from your parents
One example of this is if your parents left you an inheritance. Because this gift was given to you directly, it typically starts out as a separate asset, even if you’re married at the time. If you get divorced, your ex cannot claim part of the inheritance for themselves.
But if you mix it with other marital assets, this commingles it and turns it into a marital asset that has to be divided.
Commingling can take a few forms. For instance, maybe you use the inheritance to pay joint bills or make a joint purchase, like buying a home. Or maybe you store the inheritance with other marital funds, such as putting it into a shared bank account or investing it with other money that you and your spouse both contributed to. Once the inheritance has been mixed, it may count as a marital asset that has to be divided.
The status of your assets is important during property division. Be sure you understand all of your legal rights as you navigate this process.