The Lowest Intermediate Balance Rule (LIBR) is the legal gold standard for tracing separate property in commingled accounts.
When separate funds (e.g., an inheritance) are deposited into a joint account, and the balance dips below that amount, the court assumes separate funds were spent first. This "drain" is permanent. Subsequent deposits do not restore separate status.
In high-stakes divorce litigation, the burden of proof is on the party claiming separate property. If you cannot trace your funds through a commingled account, the court will presume them to be community property.
LIBR assumes community funds are exhausted before a single dollar of separate property is touched.
Once the balance dips, that portion of your separate claim is gone forever in the eyes of the court.
"Select a scenario to analyze the LIBR impact on your separate property claim."
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