During a divorce, assets are typically split into two different categories: separate assets and marital assets. People are sometimes allowed to keep separate assets, but marital assets generally need to go through property division. In New York, the goal is to divide those marital assets equitably, though this may not always be an equal division.
Commingled assets, on the other hand, are those that have been mixed together in some fashion. This often causes them to lose their status as separate assets and become marital assets.
A personal inheritance
One example of a common separate asset is an inheritance that a person receives from their parents. Unless it was given to the couple jointly, it usually starts as a separate asset, meaning a person’s spouse cannot claim half of the inheritance during a divorce.
However, it could become commingled in various ways. One example is putting it into a shared investment portfolio or a shared bank account. Another example is using the inheritance to buy a marital asset, such as using the money as a down payment on a house.
Once the inheritance has been commingled, it then becomes a marital asset and likely has to be divided if the couple gets divorced. So the way that an inheritance is used or stored after it has been received can have a dramatic impact on its status during property division.
Protecting your legal rights
Splitting up property can be complex during a divorce, and you may have concerns about protecting your rights to the property that you own. That is why it is so important to know exactly what legal steps to take.