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Commingling of assets can affect a high asset divorce

On Behalf of | Mar 6, 2018 | Firm News

During a marriage, most Kentucky couples pool their resources in order to make a good life together. They may use the separate assets they bring to the marriage for that to happen. When facing a high asset divorce, this fact plays a crucial role in how assets are divided.

It is called commingling. When individuals use what was once considered a separate asset to benefit the marriage, it becomes marital property. For instance, if a couple moves into a home that belonged to one of them prior to the marriage, it could become part of the marital estate if resources from both parties go toward paying the mortgage loan, making repairs or other upkeep of the home such as remodeling.

The same could be said of any other asset the parties benefit from during the marriage, regardless of where the resources came from for the purchase. If one party uses a separate account to purchase an item for the family, those resources then become the property of the marital estate. Even if one party has a bank account in his or her name alone, if both of them deposit money into it, it may be considered for division during a divorce. If one party receives an inheritance that is deposited into a joint account, it may become a marital asset as well.

As you can see, taking these actions during a marriage can make a high asset divorce challenging. It would more than likely be beneficial for any Kentucky resident finding him or herself in this situation to consult with an attorney for assistance. Whether an individual is engaged, married or facing divorce, it may help to understand how marriage and commingling affect assets and to find ways to protect separate assets should a marriage end.

Source: liveabout.com, “What to Do When You Divorce and Have Commingled Funds“, Cathy Meyer, Feb. 19, 2018