What Are Commingled Assets in an Illinois Divorce?

 Posted on September 23, 2024 in Divorce

When couples get a divorce in Illinois, one crucial concept that often arises is commingled assets. For couples contemplating divorce, understanding what commingled assets are and how they may impact the division of property is essential. Consulting with a knowledgeable lawyer can provide clarity on this often-overlooked aspect of divorce.

Defining the Basics of Commingled Assets

Commingled assets arise when separate property—owned by one spouse before the marriage—is intertwined with marital property. This blending creates challenges when it comes to determining ownership and the rightful division of assets during divorce proceedings.  

In Illinois, property obtained during the marriage is considered marital property, but complications can arise with assets that were obtained prior to the marriage.

Real-Life Examples of Commingled Assets

If one partner owned a house before the marriage and used funds from the couple's joint account for renovations or to pay the mortgage, the house may be deemed commingled. The initial separate property (the home's original value) could be diluted by the contributions made from the couple's joint finances.

Another example includes retirement accounts. If one spouse had a retirement account before the marriage, and during the marriage, both spouses contributed to it – perhaps through direct contributions or increased savings from joint finances – the account could become commingled. In these cases, dividing the asset might become complicated, with both spouses claiming entitlement to its increased value.

Understanding the Consequences of Commingled Assets

The legal implications of commingling can be significant during the property division phase of a divorce. Courts in Illinois aim to achieve an equitable distribution of marital assets, but commingled assets can complicate the situation. A lawyer may need to establish the separate contributions made to the asset versus contributions made jointly, which can be a challenging process requiring thorough documentation and financial analysis.

Partner with a Lawyer Who Offers Strategic Solutions

Given the complexities surrounding commingled assets, it is imperative for divorcing people to work closely with a skilled lawyer with experience navigating Illinois divorce laws. A lawyer can help identify which assets are commingled, ensure proper valuation, and advocate for a fair distribution based on the couple's unique financial circumstances.

Contact Our Wheaton, IL Divorce Attorney

If you are getting a divorce, chances are you want to do everything in your power to ensure your rights are safeguarded throughout the entire process. A person's rights in a divorce can only be truly protected when that person hires a lawyer. For the legal counsel you can rely on, contact the DuPage County, IL divorce lawyers with The Stogsdill Law Firm, P.C.. Call 630-462-9500 for a private consultation.