Full question:
My husband inherited part of his family business, when married, he ended up putting the end of the year earning or profit, in our joint account and my children's account. we also used the earning during our marriage when needed for the past 6 years. he know say, that his part of the business it is non marital, because its an inheritance. can this be concerned community property, because he commingling the funds into our joint bank account? can it then be marital asset?
- Category: Divorce
- Subcategory: Property Settlements
- Date:
- State: Illinois
Answer:
Difficulties often arise when one spouse mixes their separate property with marital property. In your case, if your husband has commingled his inherited business profits with joint funds, this could lead to those assets being considered marital property. Generally, when separate and marital funds are mixed, the resulting asset is presumed to be marital. The spouse who contributed separate property must prove the nature and amount of that contribution to claim it as separate.
Separate property, like inheritances, can remain outside the marital estate if it hasn't been used for the common benefit during the marriage. However, since you have used the funds for joint purposes, it may be viewed differently by the court. The frequency and nature of the use of these funds can influence the court's decision.
Marital property typically includes all assets acquired during the marriage or income earned by either spouse. In Illinois, where you appear to be located, the division of property is based on equitable distribution. This means property and debts should be divided fairly, not necessarily equally. Courts consider factors such as each spouse's contributions, the duration of the marriage, and the economic circumstances at the time of division (see Illinois law on equitable distribution).
In summary, the commingling of inherited business profits into a joint account and their use for family expenses may lead to them being classified as marital property, depending on the court's interpretation of the situation.
This content is for informational purposes only and is not legal advice. Legal statutes mentioned reflect the law at the time the content was written and may no longer be current. Always verify the latest version of the law before relying on it.