When separate and marital assets become mixed together, determining who owns what can become much more complicated. This can happen over the course of a marriage, whether through shared bank accounts, investments, retirement contributions or using separate funds for marital expenses.
When questions arise about the true nature of an asset, tracing may play a critical role in how that property is classified and divided during a divorce.
How tracing works
Think of tracing as the process of identifying the source of an asset to ascertain separate and marital interests. Without this, mixed assets may be presumed to be marital property unless the spouse claiming a separate interest can prove it.
Tracing allows you to show where the money or asset came from and how it was handled over time. Remember, the burden of tracing falls on you if you’re asserting that certain property should not be classified as marital. Financial records are often at the center of this.
Bank statements, account records, deeds, investment documents and other financial paperwork can help establish the history of an asset. The more complete the paper trail, the easier it may be to demonstrate whether an asset should remain marital property or be treated as partly separate and partly marital.
Do you have commingled assets in your divorce?
The commingling of separate and marital property can be prevented by maintaining individual accounts or using a prenuptial agreement. However, not every couple takes these steps, and in many marriages, finances become blended over time.
Reaching out for legal guidance can help you understand your rights, build a clear picture of your financial history and present a compelling case. It can make all the difference in protecting what is rightfully yours.
