Co-mingled Funds?

North Carolina Divorce Law Divorce and Separation Answers
1

I had a substantial nest egg before entering my marriage in a savings account in my name only. When I got married in 2007, I never added my husband’s name to the savings account (we shared a joint checking account). Throughout the marriage I added part of my earnings into the savings account, but used that money to pay marital and household bills each month (i.e. electric bill, internet bill, credit card bills, car payments, etc…). As it turns out, I actually spent more money from the savings account to pay marital expenses than I put into the savings account. The balance of the savings account is now lower at the time of separation than when I got married.

My husband hired an attorney that insists he is entitled to half of ANY money deposited into my savings account during the duration of the marriage, saying I was co-mingling money? They are willing to take me to court over this. I can clearly show every single deposit and every withdrawal from that savings account, and what every withdrawal was used for (it was all for expenses my husband and I incurred during marriage).

My question is:
Have you ever heard of this happening before? I have done some research on this topic and the most common issue I’ve found are two individuals that put their individual money into a joint account, and that’s not my issue.

Do you think he will win this case if it does go to court if I can clearly prove the money was used for marital expenses, even though his name was never on the account?
Thanks for your help.

2

I disagree with your husband’s attorney if what is he saying is that the savings account itself is martial property. It is not, it is your separate property and should remain as such.

Any money that was deposited into the account during the marriage is divisible, but not if it was already spent, and it sounds like it was.

3

Thanks for the help Erin - can i ask a follow-up question?
If the money that was put in is divisible (i get that) - what would i need to do to show that they money that came out was for marital expenses? They are claiming that it went in as divisible - but the money that came out came from just me. In essence claiming that he should get half the deposits but not be responsible for the debits from that account (marital expenses). Its a pretty large sum of money to me and i just don’t feel its right. The payments out are limited in number - typically to pay big bills (credit card payments). Those credit card bills show line item expenses.

4

In my opinion what went out during the marriage should be subtracted from what when in during the marriage, and the remainder divided.