TERASAKA v. TERASAKA (Appellate Division, 4th Department)

The Appellate Court rejects defendant-husband’s claim that his wife’s trust account was marital property subject to distribution.  An issue of comingled funds arose because the plaintiff-wife would transfer her separate funds into a marital checking account for some time prior to transferring her separate funds into its final location- her separate property trust account.  Here, the wife had traced the comingled funds, which was acquired by gift or inheritance, with enough sufficiency to rebut the marital presumption.  The wife’s expert witness was able to distinguish the portions of the marital checking account which were comprised of the separate property and marital property even after it was comingled for approximately 3 months.  Furthermore, the marital checking account was only held in wife’s name.