Commingled Property at Divorce

This lesson covers characterization of commingled property at divorce. It covers tracing, transmutation, differentiation between income and passive appreciation and other rules regarding characterization of commingled property as marital or separate.

Computation of the separate and marital portions of mixed pensions, a common asset of divorcing parties, involves complex issues that are beyond the scope of this lesson.

Before beginning this lesson, students must have a good understanding of the difference between community or marital and separate property, and the principles of equitable distribution. It is recommended that students first complete the lesson on property division at divorce.

Note - Some states treat all property owned by either spouse, no matter how or when it was acquired, as marital. This lesson does not apply to states that do not differentiate between marital/community and separate property. Nor does it apply to states that treat all commingled property as marital or community.

Learning Outcomes

On completion of the lesson, the student will be able to:

1. Explain tracing, transmutation, differentiation between income and passive appreciation and other rules regarding characterization of commingled property in divorce.
2. Examine the characterization of commingled property as marital or separate at divorce.
3. Analyze how the increased value of an asset resulting from a contribution (monetary or otherwise) of either party during the marriage is usually considered marital.