Commingled assets blend separate and marital property, making property division complex. Imagine you used your savings to buy a home, but you and your spouse later contributed to its mortgage. This mix of funds can blur ownership lines, complicating who gets what in a divorce.
How do commingled assets impact property division?
In Michigan, dividing property looks at mixed assets under fair distribution. Courts divide property fairly but not always equally. Michigan law guides this process. Here are a few examples of mixed assets:
- Bank accounts: You mix separate funds with marital earnings in a joint account.
- Real estate: You use pre-marital savings for a down payment, then pay the mortgage together.
- Retirement accounts: You contribute to a retirement account during marriage that started before marriage.
You must categorize these assets properly for a fair division. Courts often consider why you mixed the assets and whether the separate property lost its unique nature.
How do commingled assets affect elder couples?
As an older couple, you face special challenges with mixed finances. After many years of marriage, your money has integrated more deeply. For example, your spouse might have helped fund your retirement account, or both of you may have paid for a property bought long ago.
- Long-term investments: They might have bought stocks or bonds before marriage but added more over the years.
- Pensions and social security: Both spouses’ work can affect these benefits.
- Estate planning: They might have changed wills or trusts during the marriage.
These issues can affect financial security after divorce. Knowing which assets stay separate and which you need to share can help protect your financial future.
Conclusion: The importance of clarity in property division
Sorting through commingled assets during a divorce can feel overwhelming. An attorney can help clarify ownership and ensure a fair division. They can assist in tracing funds and identifying the original nature of assets. By seeking legal guidance, you can make informed decisions that protect your interests and help secure your financial well-being.