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[[File:lighterstill.jpg]][[File:B_commingle.jpg|right|frame]]
*[http://en.wikipedia.org/wiki/17th_century 1612]
==Definition==
*1: to blend thoroughly into a [[harmonious]] [[the Whole|whole]]
*2: to combine (funds or [[properties]]) into a common fund or stock
==Description==
In [[law]], '''commingling''' is a breach of [[trust]] in which a fiduciary mixes funds that he holds in the [[care]] of a client with his own funds, making it [[difficult]] to determine which funds belong to the fiduciary and which belong to the client. This raises particular concerns where the funds are [[invested]], and gains or losses from the investments must be allocated. In such circumstances, the law usually presumes that any gains run to the client and any losses run to the fiduciary who is [[guilty]] of commingling.
''Commingling'' is particularly an issue in case of [http://en.wikipedia.org/wiki/Bankruptcy bankruptcy] of the fiduciary. Funds held in [[care]] are not the fiduciary's [[property]], and the client is not a creditor, so in case of bankruptcy, if the funds have been properly kept [[separate]], they can easily be returned to the client. If, however, the funds have been commingled, the client is potentially subject to [[becoming]] [[entangled]] in the bankruptcy proceedings, and there may not be sufficient funds to pay the client back.
''Commingling'' is also [[evidence]] that may be used in "[http://en.wikipedia.org/wiki/Piercing_the_corporate_veil piercing the corporate veil]" of a [[sham]] corporation, where a person shields himself from personal [[liability]] through "incorporation", yet fails to [[observe]] strict [[separation]] of corporate and personal [[property]] or accounts, among other improprieties.
In [http://en.wikipedia.org/wiki/Community_property community property] states of the [[United States]], "commingling" non-marital [[property]] with [[marital]] property can make it [[community]] property. For example, depositing [[money]] received by an individual through inheritance – ordinarily considered non-marital, [[individual]] property – into a joint bank account may [[transform]] the money into community property. Most community property states apply a presumption of community property; where there is any ''commingling'', the [[burden]] of [[proof]] is on the party disputing the [[classification]] to "trace" the property back to individual property, and demonstrate an [[intent]] to keep it [[separated]].[http://en.wikipedia.org/wiki/Commingle]
==See also==
*'''''[[Fraud]]'''''
[[Category: Law]]
*[http://en.wikipedia.org/wiki/17th_century 1612]
==Definition==
*1: to blend thoroughly into a [[harmonious]] [[the Whole|whole]]
*2: to combine (funds or [[properties]]) into a common fund or stock
==Description==
In [[law]], '''commingling''' is a breach of [[trust]] in which a fiduciary mixes funds that he holds in the [[care]] of a client with his own funds, making it [[difficult]] to determine which funds belong to the fiduciary and which belong to the client. This raises particular concerns where the funds are [[invested]], and gains or losses from the investments must be allocated. In such circumstances, the law usually presumes that any gains run to the client and any losses run to the fiduciary who is [[guilty]] of commingling.
''Commingling'' is particularly an issue in case of [http://en.wikipedia.org/wiki/Bankruptcy bankruptcy] of the fiduciary. Funds held in [[care]] are not the fiduciary's [[property]], and the client is not a creditor, so in case of bankruptcy, if the funds have been properly kept [[separate]], they can easily be returned to the client. If, however, the funds have been commingled, the client is potentially subject to [[becoming]] [[entangled]] in the bankruptcy proceedings, and there may not be sufficient funds to pay the client back.
''Commingling'' is also [[evidence]] that may be used in "[http://en.wikipedia.org/wiki/Piercing_the_corporate_veil piercing the corporate veil]" of a [[sham]] corporation, where a person shields himself from personal [[liability]] through "incorporation", yet fails to [[observe]] strict [[separation]] of corporate and personal [[property]] or accounts, among other improprieties.
In [http://en.wikipedia.org/wiki/Community_property community property] states of the [[United States]], "commingling" non-marital [[property]] with [[marital]] property can make it [[community]] property. For example, depositing [[money]] received by an individual through inheritance – ordinarily considered non-marital, [[individual]] property – into a joint bank account may [[transform]] the money into community property. Most community property states apply a presumption of community property; where there is any ''commingling'', the [[burden]] of [[proof]] is on the party disputing the [[classification]] to "trace" the property back to individual property, and demonstrate an [[intent]] to keep it [[separated]].[http://en.wikipedia.org/wiki/Commingle]
==See also==
*'''''[[Fraud]]'''''
[[Category: Law]]
