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The Use of "Separate" Funds for Marital Purchases

By Burke & Domercq, LLP of Burke & Domercq, LLP posted in Divorce on Friday, September 15, 2017.

What happens when one of the spouses uses money or assets they had prior to marriage (known as "separate property") to purchase an asset which is classified as community property in a divorce such as the family home?  How do you protect separate assets from community assets and what does "commingling" mean?

Generally speaking, separate property is any money or assets a person has prior to entering into a marriage, as well as specific forms of inheritance during the course of the marriage.  These assets and funds should not be divided in the divorce as they are the "separate" property of the spouse.

The complications set in when "separate" funds are used to acquire or support a marital asset and vice-versa.  For example, if one of the spouses uses their separate investment account or borrows against a retirement account established and funded prior to the marriage to use as a down payment on the marital home the money they invested may need to be repaid out of the community property prior to division.

Likewise, if the spouse owned a home prior to getting married and had converted it to a rental property and the married couple used marital funds to make repairs to the "separate" property of one spouse, the community would need to be reimbursed for those expenses prior to division of community assets.

The commingling of funds, or the use of separte funds for marital purposes and vice versa is quite legally complex.  This is why it is important to work with the experienced Carlsbad divorce and family law attorneys at Burke & Domercq.  We have represented North County clients before our local family law courts in Vista for decades.  We help to protect your assets, and work to achieve the best possible outcome in your case.

If you are concerned about "separate property" or the use of marital funds to support separate property we invite you to contact us or call 760-712-3741 to schedule an appointment with one of our attorneys.

Tags: Carlsbad, North County, commingling, community property, divorce, separate property

Related Posts: When Should You Consider Speaking with the Divorce Attorneys at Burke & Domercq?, The Fiduciary Duties of Divorcing Former Spouses, Texts and Emails in Child Custody and Domestic Violence Disputes, Can a Court Set Aside a Divorce Decree?

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