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Can Separate Property Become Marital Property?

During the asset division process, your assets will be placed into two primary categories: separate property and marital property. The former refers to property owned by an individual spouse, such as property owned before the marriage. The latter refers to property acquired during the marriage and/or jointly owned by both spouses.

In addition to property owned before the marriage, separate property can include gifts or inheritance, property spouses agreed to be separate in writing (via a prenuptial or postnuptial agreement) or personal injury awards meant to compensate for pain and suffering.

But are there ever any circumstances in which separate property could become marital property?

  • Commingling: There are some circumstances in which separate property gets mixed in with marital property. If one spouse deposited proceeds from an account or investment they purchased before the marriage into their joint account, that money would be considered joint property, as it was commingled with marital funds.
  • Contributions: Portions of property (but not the entirety of the property) could become marital property if a spouse makes contributions that increase the value of that property. If, for example, one spouse owns real estate before getting married and never put their spouse’s name on the title and the couple then uses marital funds to make improvement, the other spouse would still have a claim to a portion of the value of the property despite not being on the title.

With every property division process, judges will carefully analyze anywhere there is a dispute or gray area to make a ruling on whether the property is separate or marital property.

For more information about the asset division process and guidance through your divorce, contact an experienced Minnesota divorce lawyer at Appelhof, Pfeifer & Hart, P.A.

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