Dividing marital assets between a divorcing couple is often one of the most complex and difficult aspects of the divorce process. Couples who cannot reach an agreement during the property division process may find themselves involved in a contentious litigation process.
One common disagreement occurs when determining whether an asset is owned individually by one spouse or belongs to both spouses in the form of marital property. Complex and illiquid assets such as real estate, pensions, investment accounts, businesses, and vehicles could all be considered either marital or nonmarital property, depending on when they were acquired. An asset that began as nonmarital property may become marital property through a process known as “commingling.”
What is Commingled Property?
Only marital property is subject to division in a divorce. This includes both assets and debts that you, your spouse, or both of you together acquired during your marriage. However, even if an asset was acquired during the marriage, that does not necessarily make it marital property. For example, an asset acquired during the marriage could be considered nonmarital property if it was:
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