Commingling Assets

What Are Commingling Assets?

Commingling assets is a common and often misunderstood issue in many divorce and property division matters. In the simplest terms, commingling occurs when separate property—assets that legally belong to one spouse alone—is mixed together with marital property in a way that makes it difficult to determine what portion is separate and what portion is marital. This blending can unintentionally transform separate assets into marital assets, or at least create disputes about ownership that must be addressed during divorce.

Separate property may include assets owned prior to marriage, inheritances received by one spouse alone, gifts made specifically to one spouse, or certain personal injury recoveries. Marital property, by contrast, generally includes assets acquired during the marriage, regardless of which spouse earned or purchased them. The law requires courts to divide marital property in a fair and equitable manner, but separate property typically remains with the spouse who owns it—unless it has been commingled.

How Commingling Happens

Commingling can occur in many different ways, and often without either spouse fully realizing it. Some common examples include:

Depositing inherited or premarital funds into a joint checking or savings account
Using separate property to make improvements to a marital home, such as remodeling, repairs, or additions
Adding a spouse’s name to the title of a previously separate asset, such as a home or vehicle
Using separate funds to start or invest in a jointly owned business
Mixing separate investment accounts with marital funds, making tracing more complex
Paying marital debts or expenses with otherwise separate money

When these situations arise, the task becomes determining whether the separate portion can be clearly traced. If it cannot, the court may find that the separate property has been converted into marital property.

Why Commingling Matters in Divorce

The classification of assets significantly impacts how property is divided during a divorce. If separate assets have been commingled, the spouse who contributed those separate funds may risk losing some or all of their separate interest unless they can demonstrate the source and ownership of those funds.

A skilled attorney will examine financial records, transaction histories, titles, appraisals, and other documents to build a clear picture of how assets were handled over time. In many cases, the involvement of financial experts is also crucial.

Our Experience Handling Commingling and Complex Property Division Issues

At Stange Law Firm, PC, we have extensive experience dealing with all aspects of complex property division, including cases in which commingling plays a central role. Our attorneys understand the legal standards involved and the detailed factual analysis these cases require. We know that these issues can significantly affect your financial future, and we work carefully and strategically to help protect your rights.

Our firm’s exclusive focus on family law gives us a deep understanding of how commingling issues arise and how courts analyze them. We also remain current on developing trends, case law, and statutory changes that may influence how separate and marital property are treated.

Representing Clients on Both Sides of Commingling Disputes

We routinely represent clients whether they are seeking to reclaim a commingled portion of separate property or arguing that commingled funds should be considered marital.

If Your Separate Property Was Commingled

If you contributed separate funds to a marital asset—or if separate property became mixed with marital funds—we can:

Conduct a full tracing analysis with the help of forensic accountants
Review bank statements, account transfers, purchase records, and investment documents
Identify and document the original source of the separate funds
Prepare a legal argument to demonstrate why that portion should be classified as separate
Present expert testimony when necessary to support your claim
Work toward recovering your separate contribution as part of the final property division

This approach is especially important in cases involving substantial separate contributions to marital homes, financial accounts, business interests, or investment portfolios.

If You Benefited From the Commingling of Assets

If you are the spouse who benefited from the commingling, we can:

Argue that the separate funds became integrated into the marital estate
Show that the transactions lacked clear evidence of intent to keep the funds separate
Emphasize improvements, investments, or decisions made jointly during the marriage
Highlight the practical challenges of tracing the separate funds
Present a compelling argument that the entire asset should be divided as marital property

Both perspectives require detailed knowledge of family law and property division frameworks. Our attorneys understand how to build arguments that support your position and ultimately strengthen your bargaining power.

The Role of Financial Experts in Commingling Cases

Commingling cases often require more than legal knowledge—they require financial interpretation and forensic analysis. At Stange Law Firm, PC, we work with a respected network of outside specialists, including:

Forensic accountants
Business valuation professionals
Financial analysts
Real estate appraisers
Tax consultants

These experts help us trace money, determine asset values, understand the movement of funds, and provide credible opinions to strengthen your case. Their involvement can be especially critical in cases involving:

High-asset estates
Multiple income sources
Business ownership
Investment accounts with frequent trades
Assets acquired before marriage
Mixed or multilayered financial transactions

Their insights allow us to present clearer, more persuasive arguments on your behalf.

Why the Outcome of a Commingling Case Matters

The classification of assets impacts:

How much property each spouse receives
Whether reimbursement is owed
How certain assets—such as homes, businesses, or retirement accounts—are split
Future financial stability
Tax consequences associated with transfers or divisions

A commingling determination can affect everything from long-term financial planning to daily living arrangements. For this reason, we approach each case with the careful attention and strategic preparation it deserves.