There are three classes of property when it comes to divorce in Pennsylvania: separate property, marital property and commingled assets. Separate property consists of what you owned before the marriage and is not subject to division during divorce. Only marital property (acquired during the marriage) is up for division.
Commingled assets are a mix of separate and marital property. This often happens during the course of the marriage. For example, if you owned a home before marriage, but both you and your spouse contributed to its mortgage or improvements, the property could become commingled.
Similarly, if one spouse owned a business before marriage but used marital funds to expand the business, invest in new assets or support its operations, the value of the business could be partially commingled.
The complexities of dividing commingled assets
Pennsylvania courts divide marital assets equitably. Commingled assets can complicate things due to the blur between separate and marital interests. Determining what portion belongs to each spouse can be tricky.
In some cases, commingled assets may lose their separate identity entirely. The court might treat the asset as fully marital property, which can significantly impact the final property division in a divorce.
How to protect your interests
If you suspect you have commingled assets, tracking the source of your funds and documenting your contributions is essential. Courts require a detailed analysis of financial records to untangle commingled assets. Bank statements, tax returns and property deeds can all go a long way in showing what portion is separate and what is marital.
You may also want to consider working with a forensic accountant to unravel the complexities of commingled assets. Seeking early legal guidance is equally crucial to securing a fair divorce settlement and protecting your interests.
