What happens to separate property if it is commingled with marital property?

When separate property is commingled with marital property, it generally loses its separate status, meaning it becomes more difficult to distinguish and may be treated as marital property in the event of a divorce. Commingling occurs when separate property is mixed with marital assets to the point where it cannot be easily separated or identified, which can happen through joint use, transfer, or combining funds.

For example, if one spouse inherits money (separate property) and then deposits it into a joint bank account, that money may lose its separate character because it has been combined with marital funds. Courts aim to ensure fairness in asset division, and the difficulty in segregating commingled assets can lead to the presumption that they form part of the marital estate. This perspective emphasizes the importance of keeping separate and marital properties clearly delineated to maintain their distinct statuses.