If you’re getting divorced, it’s important to declare to the court what assets you own. These assets will generally be divided into two categories. First, you have separate assets that only belong to one person, such as things that they brought to the marriage with them. Secondly, you will have marital assets, which are those that they have acquired together while they have been a couple.
Commingled assets are those that have been mixed together. In some cases, this can change their status, taking them out of one category and putting them in another. As you’ll see, this could be very important, especially with some major financial assets.
Issues with an inheritance
One common example of this is when someone gets an inheritance from their parents. As a general rule, even if they are married at the time, the inheritance is considered to be a separate asset. If they get divorced, they do not have to divide their parents’ inheritance with their ex.
However, many people simply use that inheritance to pay the bills, buy a home or make other joint purchases, or simply to invest in a shared portfolio. They may even just keep the inheritance in a shared bank account.
All of this mixes the inheritance together with other marital assets. When the couple gets divorced, the court may then determine that the commingled inheritance is now also a marital asset, meaning it would have to be split up when it would not have otherwise.
You can imagine how drastic of an impact things like this can have on your financial situation. Be sure you know what legal steps to take as you go through the divorce process.