Dividing property during divorce is rarely simple, especially when the couple owns high-value assets. One of the biggest challenges arises when separate property becomes mixed with marital property. This mixing, known as commingling, often blurs the lines of ownership and can turn an otherwise straightforward asset division into a time-consuming dispute.
In high-asset divorces, commingling happens more frequently because of the variety of accounts, business interests and investments involved. For example, one spouse may use pre-marital funds to buy a home, but if that home is titled jointly or maintained with shared income, the property may be treated as marital.
It is important to keep your separate assets separate
When one spouse mixes personal property with marital finances, it may lose its protection as separate property. This is why keeping a clear boundary between individual and shared assets is so critical. Creating and maintaining separate bank accounts, tracking how property is used and avoiding joint titling are simple but effective steps. For example, income from a personal investment should not be deposited into a shared checking account used for daily household expenses. Doing so may cause the court to view the investment as part of the marital estate.
Another way to preserve ownership is to create a clear record for all transactions. If a spouse receives an inheritance, keeping it in a separate account and avoiding using it for mutual purchases helps maintain its character. Similarly, if a business was established before the marriage, the owner should avoid mixing personal and business expenses or allowing the other spouse to invest money or labor without formal documentation.
Commingled assets often become the center of disputes in high-asset divorces. Without proper recordkeeping and clear separation, it may be impossible to prove what belongs to whom. Understanding how to protect separate property can help avoid complications and strengthen your position during asset division. Seeking legal guidance may be helpful when facing these kinds of financial questions in divorce.
