In a Virginia divorce, assets are classified as separate, marital or commingled. Separate assets are owned by one spouse before the marriage or acquired individually through inheritance or gifts. They are not typically divided during a divorce. Marital assets, on the other hand, are acquired by both spouses during the marriage and are subject to division upon divorce.
Commingled assets arise when separate and marital assets mix, making it difficult to tell which portion belongs to each spouse. Understanding how these assets are handled during divorce can help avoid surprises and prepare for a fair division. Here is what you need to know.
Dividing commingled assets in a Virginia divorce
Under Virginia law, commingled property become marital property if the separate and marital assets are mixed to the extent where the separate portion cannot be traced. Courts will divide such assets equitably. However, if you can trace your separate contribution to the property, it will not be treated as marital property.
For example, suppose you used your money as a downpayment for the family home or paid part of the mortgage before the marriage. In such a case, the court may identify your contributions as separate property while treating any equity gained during the marriage as marital property. Tracing the origin of commingled assets can help retain the status of separate contributions in their acquisition.
Remember, it is up to you to provide evidence of your separate contribution to commingled property for this to happen. This includes financial records, such as bank statements, tax returns and other relevant documentation, which can help unravel commingled assets and help ensure you do not lose out in the divorce settlement. Equally crucial is having experienced legal assistance to navigate such complexities and represent your rights.
