Personal property is very important to most people in Minnesota. There are situations where the line between separate and marital property can become blurred, though. While commingled assets might not seem like a significant concern during marriage, it can lead to unique challenges during divorce.
What are commingled assets?
Commingled assets are those that started out as separate property, but were then mixed with marital property. This means that these assets can actually make the switch from separate to marital. Since many assets that are acquired during marriage are considered marital property, some people might even mistakenly commingle their separate property. Examples of separate property that are frequently commingled during marriage include:
- Personal injury awards
These types of assets typically start off as a person’s separate property even if he or she is married. However, it is very easy to accidentally make the switch to marital property. One of the most common ways this happens is by depositing funds from that separate property into a joint account and using the money for marital purposes, such as home repairs.
Since marital property has to be divided during divorce, commingled assets can affect one’s future financial security. While the best approach is to keep separate assets completely separate to begin with, many people in Minnesota do not anticipate their marriages coming to an end. Taking an early, proactive approach to property division — including creating a comprehensive list of all assets — can often be very helpful for those dealing with commingled assets.