Commingling Legal Meaning and Definition

Here is a simplified definition of the legal term Commingling.

Commingling (verb)

Commingling is the act of combining funds or assets from different sources into a single account or pool. Although mixing funds can be legal under certain circumstances (like among spouses or business partners), it becomes illegal when someone like a trustee, guardian, or lawyer, who is responsible for managing someone else's money, mixes those assets with their own for their personal benefit. Commingling often leads to a lack of clear ownership, complicating matters of financial transparency and accountability.