When it comes to asset division during a divorce, one of the first steps to take is to determine which ones count as marital assets and which count as separate assets. Separate assets are usually owned individually, so they just stay with the owner. Marital assets are owned jointly, so they have to be divided.
But just because something starts as a separate asset does not mean it is going to stay that way forever. In some cases, assets can be commingled. This means that they are being mixed together or shared between both people, and this can sometimes change their status so that they become marital assets that must be divided.
A financial inheritance
One common example of this is when one of the spouses receives an inheritance from their parents. Because this is a direct gift to them, unless it is indicated that the parent wanted it to go to both people, it will typically be a separate asset. It belongs exclusively to the person who received it.
But that inheritance could later be commingled. Perhaps the couple uses it to make a joint purchase, like buying a home together. Or perhaps the inheritance gets deposited in their retirement savings along with other earnings, mixing the two assets together. In cases like this, the inheritance would be commingled so that it would become a marital asset. This would mean the couple has to split it during property division.
The legal process
This is just one of the ways in which dividing assets can be more complicated than people sometimes realize. Be sure you understand your rights as you go through the divorce process.
