11:44
that sucks :(
Warning
Info
LSDefine
Simple English definitions for legal terms
commingling
Read a random definition: in fructu
A quick definition of commingling:
Commingling: When someone mixes their money with someone else's money, it's called commingling. This is usually a problem when a person who is supposed to take care of someone else's money, like a lawyer or financial advisor, mixes it with their own money. It's against the rules because it can lead to the loss of the other person's money. It can also be a problem in some states when a married person mixes their own money with their spouse's money, because it can make it harder to divide things up if they get divorced.
A more thorough explanation:
Definition: Commingling is when funds belonging to one party are mixed with funds belonging to another party. This is often seen when a fiduciary improperly mixes their personal funds with funds belonging to a client. This violates ethical rules and can lead to unexpected loss of funds.
Example 1: A lawyer mixes their personal funds with funds belonging to their client. This violates Rule 1.15(a) of the Model Rules of Professional Conduct, which requires lawyers to keep their clients' property separate from their own property. This can lead to the unexpected loss of client funds.
Example 2: In community property states, certain assets acquired during a marriage are viewed as jointly owned by both spouses. If a spouse mixes their separate property with marital property, such as in a joint bank account, they risk forfeiting some of the separate property in the event of a divorce. For example, in California, property acquired during a marriage is presumed to be community property and must be proven otherwise.
Both examples illustrate how commingling can lead to unexpected loss of funds or property. It is important to keep separate property and funds clearly separated to avoid any legal or ethical issues.