Facing a high-asset divorce can be complex. The distinction between separate and marital property becomes blurry due to commingling and transmutation. Understanding what these mean is essential to drawing the line on what is yours.
Blurring the lines of ownership
Commingling occurs when you mix separate property with marital property. For instance, say you inherited a large sum of money from your parents. By depositing it into a joint account for family expenses, you have commingled your inheritance. As a result, the court can treat the entire account as a marital asset subject to equitable distribution.
Transmuting assets
Transmutation often hinges on intent. Adding a spouse to a house deed is a clear signal of intent to gift the asset to the marriage, pushing the courts to presume that the property is marital. Even using an inheritance to pay down a joint mortgage can strengthen the argument that you intended to gift those funds to the marriage.
Can you still claim an asset as separate?
You can claim an asset that you believe to be separate. However, the burden of proving this lies with you. This means you need to establish a clear paper trail that shows the asset’s origin and how it was never part of joint funds.
With high-value assets on the line, navigating this alone is too risky. It would be best to seek help from a forensic accountant to untangle and trace years of bank statements and transfers. Additionally, a divorce attorney can offer clarity into your matter.
