Is the asset or liability marital?
Generally, any asset accumulated during the marriage as a result of the efforts expended during the marriage is considered marital and subject to distribution regardless of whose name it is in. However, assets that were acquired prior to the marriage may also have a marital component, if marital funds or efforts were used to increase the value. Additionally, if a premarital asset was coming led with a martial asset, the entire asset may become marital. Comingling of a marital asset is best described as taking two eggs, cracking them in a bowl, and whisking the eggs together. Once that is done, there is no way to separate the eggs individually. When marital funds are added to an account that was premarital, it is often the case that there is no way to differentiate martial from non-marital funds.
If a debt or liability is acquired during the marriage, the debt is marital, even if the debt is solely in one spouse’s name. For example, if one spouse has a credit card that is in his or her name, the debt is marital, even if the other spouse was unaware of the debt. However, there are certain exceptions if the marital debt was acquired as a result of misconduct. Misconduct is not shown by mismanagement or squandering of marital assets in a manner that the other spouse disapproves. Rather, there must be a specific finding of intentional misconduct based on evidence showing that the marital funds were used for one party’s own benefit and for a purpose unrelated to the marriage at a time when the marriage was undergoing an irreconcilable breakdown.