Here is how we generally split items:
There are 3 lists of things a PC can have:
"personal wealth" - coins, gems, disposable equally distributed wealth, manufactured by PC items, bought items
"found wealth" - found items where each PC has their own owned items
"party wealth" - found items no PC wanted or the party voted as a party item (e.g. a Carpet of Flying), expendable items (e.g. scrolls, wands) and coins/gems (i.e. party fund), all of this belongs to the party
1) All items identified (if possible).
2) All found items put into the party pool.
3) All expendable items handed out to whomever wants them or can use them. Party vote or random die roll if two or more PCs want the same expendable item (e.g. Potion of Cure Critical). Found expendable items do not count towards a given PC's "found wealth" since no matter who carries them, they are still party items. If one gets sold, the funds then go into the party fund.
4) All money, gems, etc. split even. If they cannot split even, they get sold later on, and the money is then split even. The split wealth becomes part of the PC's "personal wealth". Any remainder becomes part of the "party wealth".
5) All found non-expendable items are acquired via request. The PC with the least non-expendable "found wealth" gets first choice on new items. If that PC still is below all other PCs in wealth of found non-expendable items, he gets first choice on his next item, etc. Once a different PC has the least non-expendable found wealth, that different PC gets first choice, etc. until all items are selected or not. If an item is desired by no PCs, it goes into the party fund to be sold / used by the party as needed.
This is equitable since each PC chooses what he wants and eventually, each PC is low man on the token pole and gets to pick first.
If a PC sells one of his "found items", that's ok. The money goes into his "personal wealth", but the item stays on the "found wealth" list as belonging to him. A player can easily take an expensive found item that he cannot use and sell it for cash. That's ok. But, his will be high up on the totem pole for future item picks.
6) All manufactured or bought items belong to the PC that manufactured or bought them. They are not part of PC "found wealth", they are part of PC "personal wealth".
7) If an item on the "found wealth" list is destroyed while adventuring, it is taken off the list and that PC's "found wealth" is lowered. If an item not on the "found wealth" list (e.g. "personal wealth" or "party wealth") is destroyed, oh well. "Personal wealth" and "party items" are both expendable.
The idea here is that each PC gets an equal share of everything, but they are also responsible for most of their stuff. A Wizard spends his personal wealth on spell books or scrolls, that’s ok. But, nobody else in the party is responsible for those. He is.
The reason we do it this way is that PCs often cannot "afford" to buy items from the party. Instead of keeping track of IOUs, we keep track of "found non-expendable items". A system of IOUs where the PC with the lowest IOU gets to pick first would also work.
Getting back to the OP's question, expendable items are either "personal wealth" or "party wealth". The PC who decides to have a lot of personal wealth expendable items is making a choice. He has a lot of short term firepower, but it comes out of his own money. On the other hand, the party could vote to pony up "party wealth" to purchase or have a PC manufacture "party expendable items". An example of this might be a Wand of Cure Light Wounds manufactured and used on the group by the PC Cleric. Or, a Staff manufactured by the Wizard to help out the party. The item is a "party item" if set up this way, so although the Wizard might carry and use it for the party, it is not his. Party wealth was used to manufacture it.
Since found expendable items are automatically "party wealth", it matters not who the Cleric uses the found Wand of Cure Light Wounds on.
And, this basically boils down to "party items/funds" and individual "PC items/funds". We just happen to also have the list of found items in order to determine fairness on who gets first pick on found items next.
