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When Separate Property Becomes Commingled in AZ Divorce

Posted by attorney Timothy Durkin

Separate property can turn into community property when assets become “commingled" during the course of a marriage. The process of commingling can occur when:

  • community funds and separate funds are deposited into a joint bank account; - community funds and separate funds are combined to make purchases; - money is transferred from one bank account to another; - funds are reinvested; or - money is borrowed from an outside source.

If a spouse can track a separate asset back to its original source, they can increase their chances of keeping that asset as their sole property in the terms of their divorce. However, tracking an asset back to its initial state can be extremely difficult and this process is best facilitated with assistance from a Phoenix divorce attorney.

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