Can Separate Property Become Marital Property Without a Gift?
If separate property becomes mingled with marital property in such a way that it becomes impossible to trace, the separate property can become marital property. This happens most often with payments for houses over long marriages, or with bank accounts that may be funded in part by separate funds but are used as joint accounts. Factors the court will consider include: • The intent of the parties. • The source of the funds used to acquire the property. • The circumstances at the time the property was acquired. • The dates of the marriage, acquisition of property, and breakup of the marriage. • The purpose of the relevant transaction. • The value of the property and its significance to the parties. Cases: Landry (1995) 663 NE2d 1026 (The couple had a bank savings account with about $41,000. The account had been funded initially with separate cash, from the husband’s Schwab stock portfolio account. But over the seven years of the marriage, the couple treated the account as a joint account
