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Community Property • Commingled Bank Accounts
CPROP#051
Legal Definition
There is a presumption that expenditures for family expenses were made with community property, even though separate property funds were available. Where there is commingling and inadequate records, some family expenses may have been paid with separate property, but there is a presumption of a gift to the community, and thus no reimbursement.
Plain English Explanation
Put simply, the "family expenses presumption" means that when a married couple pays for things like groceries, house bills, or kids' activities, the law usually thinks they used money that belongs to both of them (community property), even if they had personal money (separate property) they could have used. If they mix their personal and shared money and don't keep clear records, and some of the family expenses are paid with personal money, the law thinks this personal money was given as a gift to the family. So, there's no payback for this money later.
Hypothetical
Hypo 1: Amy and Bob are married. Bob inherits $10,000 from a distant relative and deposits it into his and Amy's joint account, where they also have their salaries. Over the years, they use this account to pay for family vacations, their children's school fees, and home repairs. Result: The law assumes that the family expenses paid from the joint account, which now contains Bob's inherited money (his separate property), were made with community property. Bob cannot claim reimbursement for the inheritance used for family expenses.
Hypo 2: Bob sells a piece of art he owned before marrying Amy and deposits the money into their joint checking account. They use this account to buy groceries and pay for utilities. Result: The money from the art sale, originally Bob's separate property, is treated as community property once it's mixed in the joint account and used for everyday family expenses. There's no reimbursement to Bob for these expenses, as they're presumed to be a gift to the family.
Hypo 2: Bob sells a piece of art he owned before marrying Amy and deposits the money into their joint checking account. They use this account to buy groceries and pay for utilities. Result: The money from the art sale, originally Bob's separate property, is treated as community property once it's mixed in the joint account and used for everyday family expenses. There's no reimbursement to Bob for these expenses, as they're presumed to be a gift to the family.
