Asset commingling is the mixing of marital and non-marital assets. This can happen when one spouse uses money from a joint account to pay for expenses related to their New Hampshire business or investment or when both spouses mix their income and use joint accounts to pay for household expenses.
How it can impact a divorce settlement
For example, if you have joint bank accounts, the court may order that all the money in those accounts be divided evenly between you and your spouse. If one of you has been using the account to pay for marital expenses, the other spouse may get a share of that money.
Similarly, if you own a home or other property jointly with your spouse, the court may order it to be sold, and the proceeds are divided evenly between you. But, again, that can be a problem if you want to keep the property or if it has sentimental value.
The best way to avoid problems with commingled assets in a high-asset divorce is to keep good records and keep your finances separate from your spouse’s. That way, if you get divorced, it will be easier to determine what is yours and there will be fewer arguments about who gets what.
Ways to avoid commingling assets
In a divorce, it is important to keep track of all assets and how they are divided. One way to do this is to avoid commingling assets. Commingling occurs when two people mix their finances, such as sharing a joint bank account or credit card. This can make it difficult to determine who owns what during a divorce.
There are several ways to avoid commingling assets:
- Keep separate bank accounts. If you have joint accounts, close them and open new ones in your name.
- Use separate credit cards. Do not use joint credit cards or share account information.
- Keep track of your expenses.
Protect your interests in case of a divorce
If you blend your assets, it can be challenging to determine which assets are marital property and which are not. This can complicate matters in a divorce, especially if you need to agree with your spouse about how to divide your property.