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The Divorce Encyclopedia
Commingling


Term Definition Commingling - mixing of assets, separate and marital.
Application in Divorce Commingled property makes for surprises when it is divided in a divorce. A money gift to one spouse deposited in an account in both names become commingled property and may be viewed as a gift to the marriage, i.e., both parties.

The more commingled separate and marital property becomes the more difficult it is to decipher and separate appropriately upon divorce. A common analogy used to describe commingled property is that it is much like a scramble egg. You once had the yolk separate, but once scrambled, it is impossible to return it to a separated state.

A typical example of the commingling of assets, is using inherited or separate funds to help purchase a marital home.

Commingling of funds by an attorney -- that is, his own with those of client -- is considered a breach of fiduciary responsibility and the lawyer is subject to disciplinary action.

Also called Transmutation.

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