Key Takeaways
Commingled Property in Georgia: What Is It & How Can It Impact Your Divorce?
“Commingled property” is a term you might encounter during a divorce in Georgia. While many are aware of the distinctions between marital and separate property, few fully grasp the implications when these two intermingle. This often becomes a major point of contention regarding how assets should be divided and could lead to a prolonged and complex divorce process. Understanding the concept of “commingled property” is crucial before proceeding with your divorce.
What are Commingled Assets?
In the context of a Georgia divorce, commingled assets are those that include both marital and separate properties. Commingling occurs when separate assets are mixed with marital assets, intentionally or accidentally, making it challenging to distinguish one from the other.
Commingling in Georgia can happen in several ways, such as:
One spouse deposits separate funds into a joint bank account.
One spouse uses separate funds for the improvement or maintenance of marital property.
Inheritance money is deposited into a joint account.
Significant management of separate investments by one spouse during the marriage.
Acquisition of real estate in joint names, possibly using funds from a separate account.
How Commingling Can Affect Your Georgia Divorce
The effects of commingling assets can significantly impact the divorce process in Georgia.
Firstly, the court may need to step in to determine how to equitably divide the commingled property. In Georgia, the courts aim to distribute marital property in a way that is equitable but not necessarily equal, which can complicate matters further. Unfortunately, this might mean that separate property, which you might have brought into the marriage, could be subject to division if it is deemed to have become marital property through commingling.
Secondly, disputes over commingled assets can lead to a lengthy divorce, escalating legal and attorney fees.
Lastly, the emotional and financial turmoil of a contested divorce, particularly one centering around the issue of commingled assets, can also negatively impact any children involved.
Keep Separate Property, Separate
To avoid the complications of commingled assets, consider the following:
Have an attorney draft a comprehensive prenuptial or postnuptial agreement.
Ensure any property acquired before marriage remains in your name alone.
Avoid transferring money between joint and separate accounts.
Use personal funds only for personal or agreed-upon expenses.
Discuss and agree on the classification of large purchases with your spouse, potentially documenting this agreement.
Avoid using personal funds to pay off debts accumulated during the marriage.
Seek Experienced Legal Counsel for Any and All Questions You Might Have
Establishing what constitutes commingled property in Georgia can be complex, given the state’s equitable distribution laws. If you have any questions or need clarity on your specific case, the attorneys at Petrelli Previtera, LLC are equipped to provide the guidance you need. We have significant experience in property division in Georgia, ensuring that when you entrust us with your case, you are positioning yourself for the best possible outcome. Contact our Georgia family law attorneys today to schedule your initial consultation and take the first step towards securing your future.