What Does It Mean To Commingle Property?

Divorce lawyers often use the term “commingling.” Depending on which side you are on, it can be used in a positive or negative way. Generally, you do not want to be the party who has “commingled” assets.

In Colorado, all property acquired before the marriage is considered the separate property of the owner spouse. All property acquired after the marriage, is presumed to be marital property, which can be divided by the court when there is a divorce. For more about how property is classified and divided during divorce proceedings, please read my blog article, “What Is Marital Property?”

Commingling occurs when an individual mixes separate and marital property. For example, assume that you own a savings account before you get married. You regularly deposit 10% of your salary into this account, and you continue to do so after you get married. Because your salary becomes marital property once you get married (absent a pre-nuptial agreement), you have just commingled property. Commingling often occurs inadvertently, especially because all increase to separate property after the marriage is considered marital property.

Most often, commingling occurs due to oversight on the part of a spouse. However, the consequences can be steep. Unless a spouse can clearly demonstrate (“trace”) the value of the separate property at the time of the marriage, the court will deem all of the property to be marital.

Even if you have commingled property, you can still show what portion of the property is your separate property. You should consult with a family law attorney to discuss what documents and evidence you will need to protect your separate property.

Do you think you have commingled property? Call Katelyn today to discuss your options.