Under Wisconsin law, assets acquired during the marriage are to be split between spouses during a divorce. Assets owned before the marriage are excluded from division. However, it’s not always clear-cut.
These two classes of property can sometimes mix during the marriage, making it difficult to distinguish between them when the time comes. The term for this is the commingling of funds. For example, using marital funds to improve a home owned before the marriage or making mortgage payments could transform the house from a non-marital asset to a commingled one.
When this happens, your spouse now has a stake in the commingled property and it will count when dividing the marital estate. It could also complicate the property division process.
The law in Wisconsin
A commingled asset may be subject to division if it can’t be traced back to its source. In other words, the courts will presume it to be fully marital.
The tracing process involves identifying the origin of the funds or property to establish personal and marital interests. Should the commingling be too extensive and tracing is not feasible, the entire asset may be deemed marital property.
Documentation is key to protecting your financial interests
If you are concerned about commingled assets and want to achieve a fair divorce settlement, gathering financial records can help strengthen your position during negotiations or court proceedings. Remember, you will bear the burden when arguing your rightful stake in a commingled asset.
It can be challenging to navigate such complexities with the emotional toll of a divorce weighing down on you. Mistakes can be costly in such a high-stakes process. Seeking legal guidance can help you understand your rights and provide tailored assistance for your unique situation.