When you get married, it is not just your lives that intertwine—your finances often do, too. One aspect of marital finances that usually raises questions is asset commingling. Understanding it and its potential implications for married couples is essential.
What is asset commingling?
Asset commingling refers to the mixing of separate property with marital property. This can happen when you deposit inheritance money into a joint account or use premarital savings to purchase a family home. While combining resources in a marriage might seem natural, it is essential to understand the potential consequences.
The pros and cons of commingling
Combining assets could simplify financial management and foster a sense of unity in your marriage. It also makes bill payments easier and helps you work towards shared financial goals.
However, commingling may also complicate matters if the marriage ends in divorce. Once assets are mixed, it could be challenging to determine who owns them, potentially leading to disputes.
Protecting your separate property
If you want to maintain clear boundaries between separate and marital property, consider these suggestions:
- Keep inherited or premarital assets in separate accounts
- Document the source of funds used for major purchases
- Maintain records of separate property brought into the marriage
It is essential to note that laws regarding marital property vary by state. Consider seeking legal advice. An attorney could provide advice tailored to your specific situation and local laws.
Balancing unity and independence
While keeping assets separate could provide financial protection, balancing this with the spirit of partnership in your marriage is crucial. You may want to discuss your concerns and goals with your spouse and consider creating a financial plan that respects your individual and shared interests.
Understanding asset commingling may help you make informed decisions about managing your finances in marriage. Whether you combine everything, keep it all separate or find a middle ground, the most important thing is that you and your spouse are financially on the same page.