During high-asset divorces, economic issues often dominate negotiations. Spouses have to split their property and financial obligations. They have to determine whether ongoing financial support is necessary given their circumstances.
The goal of property division is to find a fair way to split both resources and debts jointly owned or owed by the spouses. Typically, people also have separate property that they do not need to share when they divorce. Separate property can include assets spouses inherited or received as gifts, as well as resources owned before marriage. In some cases, allegations of commingling could complicate the property division process.
What is commingling?
Commingling involves blurring the line separating personal resources from marital resources. Frequently, commingling involves giving a spouse control over or an ownership interest in assets that could be separate. Adding a spouse to the deed of a home owned before marriage is a form of commingling that gives them a claim to an ownership interest if a divorce occurs.
Commingling can also involve using marital income and assets to maintain or improve separate property. A home owned before marriage likely requires ongoing repairs and maintenance, and spouses likely use marital income to pay the mortgage insurance and taxes for the property.
In some cases, unpaid services or sweat equity could also lead to claims of commingling. If one spouse helps maintain the home throughout the marriage, that could give them a claim of partial ownership even if they are not on the deed.
Those concerned about commingling or seeking to preserve their interest in assets that could be separate may need help negotiating an appropriate property division settlement. Learning about commingling and assessing financial records carefully can help people empower themselves as they work with a skilled legal team to prepare for property division.
