When going through a divorce in Florida, one of the most complex aspects is determining which assets are considered “marital property” subject to equitable distribution and which remain “non-marital” or separate property. A critical concept that often creates confusion is commingling—when separate assets become mixed with marital assets, potentially changing their classification.

What Is Commingling?

Commingling occurs when non-marital assets (property owned before marriage or received through inheritance or gift) become mixed with marital assets in such a way that they can no longer be distinguished from one another. This mixing can happen in various ways, most commonly with financial accounts, real estate, or business interests.

Florida Statute 61.075 establishes the framework for property division in divorce, including how assets are classified as marital or non-marital. Under this statute, all assets acquired during the marriage are presumed to be marital unless specifically established as non-marital.

Common Examples of Commingling

Financial Accounts

One of the most straightforward examples of commingling involves bank accounts. Consider this scenario: you inherit $50,000 from a relative and deposit it into a joint account that you share with your spouse. Over time, both of you deposit paychecks into this account and use it to pay household expenses. According to cases like Yon v. Yon (2019), once those inherited funds are mixed with marital funds, they lose their separate character and become marital property.

Real Estate

Commingling can also occur with real estate. For example, if you owned a home before marriage but later used marital funds to pay the mortgage or make improvements, you may have commingled the property. While the initial equity might remain separate, any increase in value due to marital contributions could be considered marital property, as seen in cases like Rennert v. Rennert (2020).

Investment Accounts

Investment and brokerage accounts present particularly complicated commingling situations. In Abdnour v. Abdnour (2009), the court found that when the husband liquidated his pre-marital stocks and combined the proceeds with marital funds to purchase new investments, the assets became “irretrievably commingled” and therefore marital property.

When Commingling Doesn’t Occur

Not all situations where separate and marital property interact result in commingling. For instance, in Spielberger v. Spielberger (1998), the court found that merely adding a spouse’s name to an account doesn’t automatically convert non-marital assets to marital assets if no actual commingling of funds occurs.

Similarly, in Street v. Street (2020), the court determined that bank accounts funded during marriage with one spouse’s inheritance remained non-marital because no marital funds were added to the accounts.

Protecting Your Separate Property

To preserve the non-marital status of your assets, consider these steps:

1. Maintain separate accounts for inherited funds or pre-marital assets
2. Document the source of non-marital funds clearly
3. Avoid using marital funds to improve or maintain separate property
4. Consider a prenuptial or postnuptial agreement that clearly defines separate property

The Burden of Proof

In Florida divorce proceedings, the spouse claiming that an asset is non-marital bears the burden of proof. This means providing documentation that demonstrates the separate character of the property and that no commingling has occurred. Without such evidence, courts typically presume that assets are marital.

Seek Professional Guidance

The commingling of assets in Florida divorce cases involves complex legal principles that can significantly impact your financial future. At Rhoden Law in Brevard County, our experienced family law attorneys understand the nuances of property division and can help protect your interests during divorce proceedings.

Whether you’re concerned about maintaining the separate character of your assets or need assistance untangling commingled property, our team can provide the skilled guidance you need to navigate these challenging issues.

For more information about protecting your assets in divorce, visit our page on property division in Florida divorce.

To discuss your specific situation, in Melbourne, Palm Bay, Rockledge, Titusville, Indian Harbor Beach, with a knowledgeable family law attorney, call or text our office today or use the Contact form on our website for a complimentary phone consultation.