When it comes to property division, couples generally need to split up their marital assets. These are the things that they own jointly. Separate assets, on the other hand, typically just stay with the person who owns them and do not need to be divided.
In some cases, it can be very easy to identify a marital asset. If a couple gets married, takes out a mortgage loan jointly, and buys a house, there is a clear paper trail identifying it as something that is distinctly owned by both of them. They will have to take steps to divide it, such as selling the house and splitting any money that they earn.
How things can get complex
But the process can often be complicated because assets can change status. This may happen when those assets are mixed or commingled.
For example, say that someone bought a house before getting married. When they get divorced, they may assume that it is a separate asset. They already owned it and brought it into the marriage. They get to keep it after the divorce.
That may be true—but only if the asset has not been commingled in some way. For example, perhaps the couple refinanced the home after the marriage to get a better interest rate. They did so jointly, which gave them the best terms. Even though one person initially bought the house, it would now likely qualify as a marital asset that they both own—especially if they used joint funds during the refinancing process.
When going through a divorce, properly classifying and dividing assets is important, so be sure you know exactly what legal steps to take.
