Commingling Separate Property Guide
When most people get married they prefer to share everything. This is normal and to be expected. No one plans to separate when they are first embarking on a committed, long-term relationship. Unfortunately, it does occur sometimes. At times two spouses end up growing apart instead of growing closer and there is nothing they can do about it.
Newlywed bliss means that issues related to commingling assets arise later. They do not usually become a problem until a divorce attorney
explains why the house that you purchased while you were still single is community property now even though you paid for the whole thing yourself.
When it comes to commingling assets, the most important issues are if you do not have detailed and comprehensive records for an account’s entire life, it is almost impossible to separate assets when you are attempting to divide your property. This can result in a property that began as being yours now counting as community property and will be split with your spouse 50/50.
Unlike alimony calculations, there is a simple rule in Nevada for dividing assets when there is a divorce. Each of the two spouses receives half of all the community property.
Marriage Commingling Definition
Commingling refers to community funds being used for separate property or to contribute to separate property.
One typical example is your joint bank account being used to pay for a house you purchased before your marriage. Another example might be depositing money into your joint account (which is community property) from an inheritance (which is separate property).
Any money that you earn after getting married is considered by the State of Nevada as community property. Therefore, it can be difficult trying to keep separate properties separate.
All of the following are included in the comprehensive concept of community property:
– Houses and other real property purchased after marriage
– IRAs and any other investment account contributions made after marriage
– Pensions or 401(k) contributions made after marriage
– Cars purchased
– Income after marriage
The Risks of Commingling Assets
Commingling accounts and assets can be harmful to property owners, beyond having to split assets 50/50 in a divorce. Even if you and your ex agree to have an uncontested divorce and use mediation to divide everything, the division of property can end up differently than you might have hoped.
If you decide to combine accounts that are part of your credit score, it could end up negatively impacting your credit score. For example, your credit score can suffer if your partner skips down with an asset or defaults on payments. This is another good reason why keeping your accounts separate can be a smart idea.
When it comes to commingling assets, perhaps the most challenging and larges issue is what occurs if there is a legal separation or divorce. Unless you keep very detailed and precise records over the entire lifespan of an account, separating the assets is almost impossible to get them restored to the rightful owners. Even the best divorce attorneys cannot get your property restored to you without the proper records.
You must keep detailed records on file. That includes titles, bills of sale, receipts, and any other records associated with an asset. Most people do not have the resources or time to do this. Reconstructing these records is nearly impossible.
Benefits to Commingling Assets
However, there are benefits to commingling assets.
If something ever happens to you, your spouse or partner can take over control of your assets. That can prevent having to deal with a long, drawn-out legal battle or problems with family members.
Also, if you are the surviving spouses, it will be beneficial for you to be able to control accounts. It is never easy to lose a loved one, but if your accounts are under control, that will be one less thing that you need to worry about if something tragic happens.
Property Acquired Before Your Marriage
Property that you acquired before you got married is technically considered to be separate property.
But if it is paid for using community funds (such as your paycheck after your marriage) then it will fall within the commingling category. If you have concerns about any property, talk to a divorce attorney (even if you aren’t planning to get divorced). They can provide you with advice on how your assets can be kept out of the community property category.
Inherited property is counted as separate property, even after you are married.
How to Keep Assets Separate in Marriage
Unless you keep very detailed records, keeping assets separate that are funded with community property it is almost impossible. It doesn’t matter whose name appears on the title.
You should consider a post-nuptial or prenuptial agreement if your assets need to be kept separate. Most people are aware of prenups. However, postnups are becoming increasingly popular. This kind of agreement will be used by your divorce lawyer to prevent your property from being divided unfairly with your ex.
Working with a post-nuptial agreement rather than a pre-nuptial one can be a good idea. When these agreements are looked at by a judge in a divorce, it may be claimed that it was signed under duress. This is entirely avoided with a post-nuptial agreement.
Another way that assets can be kept separate in marriage is you and your spouse having a notarized and signed agreement. It isn’t necessary for an attorney to draw it up or for it to be really fancy. However, you can avoid possible legal issues by having the agreement drawn up by a lawyer.
Just be sure that the agreement that you and your spouse work out is in writing, notarized, and very specific. This is much more efficient than attempt to keep your assets searat and maintaining the proper paper trail for backing up your separate properties.
For more information on how https://dwp-law.com/ can help you with Commingling Separate Property, please contact us at (702) 474-0500, or visit us here:
Donn W. Prokopius, Chtd.
3407 W Charleston Blvd, Las Vegas, NV 89102