Differentiating between marital and separate property can be one of the most vital aspects of preparing to safeguard one’s future during the end of a marriage. However, there may be some situations in which this might not prove so simple, especially if separate assets are commingled with marital wealth in any way. Knowing how this might occur and how it could impact the separate identity of such assets could be vital to helping individuals in Alabama better understand what to expect during subsequent divorce proceedings.
Commingled assets
Separate assets can include items that a person owns prior to entering a marriage and even some assets obtained during a marriage may even fall under this category, such as inheritances and gifts. While any assets that are deemed separate property might not be subject to property division, if such assets are commingled with marital wealth in any way, at least a portion thereof may become marital wealth. For instance, such an outcome could occur if assets from an inheritance are used to make improvements to the family home.
Alternatively, if marital wealth is used to make improvements to properties that one owned prior to entering the marriage, this may also affect the property’s separate identity. Experts suggest that there may even be some scenarios in which the commingling of such assets is unintentional, but this might not affect the result. While topics such as the commingling of separate and marital wealth could arise under various scenarios, experts indicate that this may be more prevalent among those with considerable wealth.
Preparing for the process
The commingling of separate and marital wealth is a factor that could play a significant role in the outcome of a divorce. Those who have questions about his aspect of the process might consider speaking with a family law attorney for advice in addressing this topic and evaluating their available options. An attorney can help a client better understand what is at stake and assist in preparing a strategy with which to pursue the best outcome achievable regarding his or her future during divorce proceedings.
