When couples go through a divorce in Tennessee, one important step is to identify both separate and marital assets. Marital assets then have to go through the property division process, as both spouses own them jointly. But there are some separate assets that may be excluded from property division.
Commingling simply means mixing assets together. In some cases, when a separate asset is mixed with other marital assets or used in a specific way, it can turn into a marital asset. This can dramatically change how property division works.
Funds that were brought into the marriage
For example, if someone gets married but had previously saved up a significant sum of money, such as $100,000, it may qualify as a separate asset. They earned that money before the marriage, and their spouse has no claim to it. They would get to keep the $100,000 after a divorce.
But say that they use that money to purchase a home together. Because that home is a shared asset, this commingles the funds. The individual who bought the home likely cannot claim that they get to keep the house just because the money was initially theirs. They have essentially shared it with their spouse, especially if they are both on the title and deed for the home.
Similarly, if they give their spouse access to the money or store it in a joint financial account that they can both use, this could commingle it with other financial assets. The entire account may then need to go through property division, even though some of the funds were initially a separate asset.
Addressing property division conflicts
Issues with defining marital and separate property can certainly lead to conflicts during a divorce. Couples in this position need to know what legal steps they can take to protect their rights.