How Does Commingling Affect Property Division in Divorce?

 Posted on August 09, 2024 in Property Division

In Illinois, spouses who get divorced are both entitled to marital property. State law defines marital property as any asset that came into either spouse’s possession during the marriage. Exceptions to this include:

• Inheritances
• Gifts intended for one spouse exclusively
• Property acquired by using non-marital property as collateral
• Assets excluded by a prenuptial or postnuptial agreement

Aside from these exceptions, most possessions acquired by either spouse during the marriage are considered marital property and both parties are entitled to it.

If the spouses do not divide the marital property between themselves, a court may do it for them. The law grants courts wide discretion to determine what is considered marital property and how to divide it. Marital assets are divided in Illinois fairly, not equally, and it is largely up to a judge to decide what is fair.

The property division process is complex in itself, but it can become even more complicated when assets become commingled. Read on to find out more about commingled property and how to contact an Illinois property division attorney.

What Is Commingled Property?

Commingled property is when non-marital assets mix with marital assets. When this happens, all assets are usually considered marital property — though as usual, there are exceptions. The key determination is whether the non-marital property loses its identity and becomes subsumed within the marital property. For example:

• A spouse received inheritance funds and deposited them in a joint bank account, thus mixing non-marital money with marital money. 
• A spouse sold a piece of jewelry he or she received as an exclusive gift and used the money to help pay for a down payment on the family home.
• A spouse invests non-marital money in a joint investment account.

In cases like these, a judge is likely to declare all the money marital property and divide it between the parties as he or she sees fit.

Personal Contributions

Another important legal provision is that if a spouse contributes personal effort to a non-marital asset during the marriage, that asset can become marital property. The law considers contributions from the other spouse as part of the marital estate. When those contributions become commingled with non-marital assets, those assets become marital.

A common example of this is when one spouse owns a business. Even if he or she owned the business before the marriage, it will likely be divided if a court feels the other spouse contributed effort to it. For instance, if Spouse A operated the business while Spouse B was a homemaker and stay-at-home parent, a court may decide that Spouse B made it possible for Spouse A to focus on the business, a personal effort that entitles him or her to a share of the company.

Contact a Geneva, IL Property Division Attorney

Property division can be a tricky process when it involves commingled assets. At The Law Offices of Douglas B. Warlick & Associates, we will use our experience and superb knowledge of divorce law to protect your fair share of the assets and make the property division process as smooth as possible. Call 630-232-9700 to speak with a skilled Kane County, IL property division lawyer today.