Answered by Shaykh Yusuf Weltch
Question: Assalamu alaykum
If I acquired wealth in an impermissible manner, then segregated that wealth from the remainder of my wealth, is spending from the remainder of my wealth considered spending with impermissible money?
Answer: In the Name of Allah, the Most Merciful and Compassionate
Any portion of one’s wealth that was acquired in a permissible manner is permissible to spend.
If one has mixed both the permissible wealth and the impermissible it is likewise permitted to spend of it. However, one is only permitted to spend up to, but not exceeding, the permissible portion. This is because wealth is not specified due to specification. [Ibn Abidin; al-Radd al-Muhtar: quoting from Ibn Nujaym, al-Ashbah wal-Nazair]
For example, if you have £2,000, £1,600 is from a permissible source and £400 is from an impermissible source. Even though the money has been mixed, you are permitted and not sinful for spending up to the amount of £1,600. This is the meaning of the above expression, ‘Wealth is not specified due to specification.’
However keeping them separate is more cautious.
Note that it is fortunate that you realized the severity of impermissible wealth. If one is looking to repent from such sin, they need to return that which was illegitimately acquired. If you have the exact money that was originally acquired you should return it however possible. It is not necessary that they know that you are returning the money. If that specific money has changed then you must return the value. [Haskafi, al-Durr al-Mukhtar – Bab al-Ghasb]
Hope this helps
[Shaykh] Yusuf Weltch
Shaykh Yusuf Weltch is a graduate from Tarim; student of Habib Umar and other luminaries; and authorized teachers of Qur’an and the Islamic sciences.