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Mark Abzug

Untangling comingled assets in property division after a divorce

On Behalf of | Sep 13, 2024 | Property Division

Divorce can be stressful and emotional, and property division can make it even more complicated. Dealing with mixed assets is one of the trickier parts of dividing property after a divorce. Understanding how mixed assets affect property division is crucial for a fair settlement in Florida.

What is commingling?

Commingling happens when non-marital property, usually not divided in a divorce, mixes with marital property. This can happen in several ways, such as using marital funds to renovate a home owned by one spouse before the marriage or depositing an inheritance into a joint bank account.

Florida laws on commingling

Florida laws follow equitable distribution. Courts divide marital assets and debts fairly, though not necessarily equally. When commingling happens, the line between marital and nonmarital property can blur.

Examples of commingling

Here are some examples of commingling of property:

  • Real estate: If one spouse owns a home before marriage and both contribute to mortgage payments or renovations using marital funds, they may commingle the house. This means the court could divide it during the divorce.
  • Bank accounts: Depositing nonmarital funds, like an inheritance or personal injury settlement, into a joint account can lead to commingling. Once mixed with marital assets, these funds may lose their separate property status.
  • Retirement accounts: Contributions made to a retirement account before marriage are usually nonmarital. However, using marital funds to contribute to the account during the marriage can make it partially marital property.

To avoid commingling complications, keep nonmarital assets separate. Maintain individual accounts for inheritances or pre-marital savings and keep detailed records of all transactions.

Moving forward

Commingling of assets can significantly impact a divorce in Florida. By understanding how commingling works and taking steps to protect your assets, you can achieve a fairer division of property. If you have questions or need guidance, seeking legal advice is always wise.

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