Two taxpayers had separate businesses that they each ran independently prior to marriage. After marrying, this relationship persisted. Eventually, they began to work for each other's businesses and sharing funds, responsibilities, and so on. Several years after that, they had a falling out and are deciding to file separately, each taking their entire business with them on their own returns. Is this possible? (Look at the explanation as much as the answer.)

	No, they will split the income from each business and share this income on each separate return. The businesses have become commingled and are now community property.
	Yes, the businesses were owned independently prior to marriage and therefore are considered separate property.
	No, all businesses are considered community property regardless of prior or post ownership.
	Yes, the businesses can be reported separately because all business activity is considered separate property under California law.