I can attest to the importance of this legal separation. I had a personal laptop stolen that had work files on it from before my work had given me a laptop, and I had the uncomfortable responsibility of disclosing that to my boss.

I hadn't even done anything wrong but it made me hella uncomfortable thinking about my work or the cops getting their hands on my laptop. It just feels too personal.

I had to file police reports and everything, and ultimately it was never found, but I still hate the idea and sometimes think about where that laptop ended up.