Is it possible to untangle commingled assets in Pennsylvania?

Is it possible to untangle commingled assets in Pennsylvania?

On Behalf of | Oct 17, 2024 | divorce

Couples often mix their personal property during marriage. This mixing, called commingling assets, is common when you think your marriage will last forever. But what happens if you divorce? Understanding how to separate these assets is key to avoiding complications during divorce proceedings.

What does commingling assets look like?

Here are some examples:

  • Putting inheritance money into a joint account
  • Using savings from before marriage to buy a family home
  • Adding your spouse’s name to an asset you owned before marriage
  • Using marital funds to improve separate property

In Pennsylvania, courts consider all property acquired during marriage as marital property, no matter whose name is on it. This includes income, retirement accounts and even growth of separate property.

Marital and separate property

Reclaiming separate property in a Pennsylvania divorce can be challenging. Courts initially assume that all assets gained during marriage are marital property. To prove an asset is separate, you must “trace” it.

Tracing involves:

  • Demonstrating that the asset came from before the marriage or was a gift or inheritance
  • Showing that it wasn’t used for the marriage’s benefit
  • Giving clear proof that the asset is separate

Tracing typically requires gathering financial records that clearly show the asset’s origin and path. You may need to track deposits, transfers and purchases to prove the asset stayed separate from marital funds.

Protect your interests

Pennsylvania divorces use “equitable distribution” to split assets. This aims to be fair, but not always equal. One spouse might get more than the other. Courts look at things like how long the marriage lasted, each spouse’s money situation and what each brought to the marriage.

Given the complexities of asset division, especially with commingled property, the outcome may not be what you expect. Your separate property might be classified as marital assets, or you might not receive the share you anticipated. Consider consulting with an attorney to present your case effectively and help you get a fair outcome.