Commingling - sustany/dvg GitHub Wiki

Commingling refers broadly to the mixing of funds belonging to one party with funds belonging to another party. It most often describes a fiduciary�s improper mixing of their personal funds with funds belonging to a client. This form of commingling violates Rule 1.15(a) of the Model Rules of Professional Conduct, which states that lawyers must keep their clients� property separate from their own property. This District of Columbia Court of Appeals case explains that rules against commingling are not only to prevent an attorney�s misappropriation of client funds, but also to prevent the unexpected loss of client funds for reasons beyond the attorney�s control.�

Commingling can also be an issue in community property states, which view certain assets acquired during a marriage as being jointly owned by both spouses. If a spouse mixes their separate property with marital property, such as in a joint bank account, and there is later a divorce, then the spouse risks forfeiting some of the separate property when the marital property is divided. California law, for example, presumes that property acquired during a marriage is community property, and must be rebutted by evidence to the contrary.�