Separate Property Tracing
What Is Tracing?
Tracing is the procedure utilized to prove that a party’s separate property was the source of funds used to purchase an asset or make an expenditure that is reimburseable.
When Is Tracing Utilized?
Tracing is utilized when separate property and community property are commingled in an account or in an asset.
What Are Examples Of Commingling?
Commingling occurs when separate property funds and community property funds are deposited into the same account when separate property funds are used to purchase a jointly titled asset, when separate funds are used to make payments on a mortgage on a community asset or when separate funds are used to improve a community asset.