Definition - What does Commingling mean?

Commingling is the combining of money from one party with the money of other parties in the same account.

Typically, commingling occurs when more than one person has access to the same account. Commingling can also happen when one person puts income from multiple sources into the same account.

Different rules govern the practice of commingling in a variety of legal settings.

Justipedia explains Commingling

Commingling funds can be a problem when high standards of business accounting are required.

For example, lawyers in many jurisdictions are ethically prohibited from commingling their current clients’ funds in the same trust account. This prohibition protects clients when disputes arise over legal fees and makes it easier to ascertain what a client’s fees were used for.

However, commingling in other relationships is a normal and standard practice. Married partners, for examples, often commingle their income in the same bank account.

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