Posted by Nydia Streets of Streets Law in Florida Divorce
What are commingled funds in a Florida divorce? If a party claims certain funds are non-marital, separate property, but those funds are deposited into an account jointly owned by the parties or an account which contains marital funds, the funds claimed to be non-marital and separate are considered commingled. Commingled funds are generally classified as joint, marital property, so by depositing funds in the wrong account, a spouse can unknowingly transform his or her separate property into joint property. This was an issue in Rogers v. Rogers, 2D21-719 (Fla. 2d DCA November 30, 2022).
During the parties’ marriage, a boat was purchase for $220,000. At the time of the parties’ divorce, the boat’s value had increased by over $7,000.00. The former husband argued the boat was non-marital because it was a gift from his father, paid for with money from his father’s trust. The trial court agreed with the former husband and awarded this asset to him as his non-marital property. The former wife appealed.
The appellate court reviewed the evidence submitted at trial which showed the former husband received disbursements from his father’s trust. He deposited these disbursements into an account containing marital funds which the parties used to pay their expenses. The evidence did not show a direct purchase of the boat by the former husband’s father. The appellate court therefore held “Accordingly, the funds lost their nonmarital character and the boat purchased with the funds should have been treated as a marital asset.” The case was remanded for the trial court to re-do the equitable distribution now treating the boat as a marital asset to be divided between the parties.
For specific guidance and answers to questions about your case, schedule your consultation with a Miami family law attorney.