In California, assets acquired during the marriage (community property) belong equally to both spouses. However, the division of these assets can become complicated, especially when commingled assets are involved.
Commingling occurs when separate property and marital property mix, making it difficult to distinguish between property you owned before the marriage and community property. For instance, if your spouse owned the family home before the marriage and then used funds from a joint account for renovations, the house may be considered partially community property.
Separating personal and community interests
Once you identify commingled assets, tracing them back to their origin can help establish the separate contributions you or your spouse made. This often involves looking back through financial records to pinpoint how the blending began. Reviewing financial documents such as bank statements, receipts and tax returns can help distinguish between separate and community interests.
In some cases, tracing back commingled assets may require forensic accountants or other financial experts, especially when it involves complex assets. It can help ensure an accurate and fair division of property in your divorce.
Seek informed guidance to secure your future
If there are disputes about the status of a commingled asset, the burden of proof lies on the spouse claiming that it is partially separate property. It means presenting a convincing case demonstrating your rightful stake in the commingled assets to avoid losing out. Courts treat commingled assets as community property and subject to equal division if there is no clear distinction.
Reaching out for legal assistance can help you safeguard your rights and interests as you navigate such complexities of the property division process of your divorce, which can significantly contribute to achieving a favorable settlement.