Changes, Contributions, and Improvements Flashcards
CP to Improve SP Business or Investment
Pereira Method: where personal skills and efforts contributed to growth of business, SP = value at time of marriage + faire rate of return per annum
Van Camp Method: where value based on capital investment: CP = market rate for value of each spouse’s services - family expenses paid for with community funds
CP to improve other Spouse’s non-business SP
SPLIT: Either presumption or no presumption of gift
CP to improve own SP
Community receives reimbursement of cost or amount of increase in value, whichever is greater
CP Improvement to SP Real Property
Property still SP but Community be reimbursed
Credit Acquisition
During Marriage: Presumption that it is CP debt but subject to Lender’s intent (reliance on SP)
NOTE: credit/reputation is considered a CP asset
Transmutation Definition
When character of an asset is changed during marriage by agreement
Requirements of Transmutation
Pre 1985: No requirement
Post 1985:
1. In writing
2. Signed by Spouse whose interest is affected
3. Explicitly stating that change in ownership is being made
Transmutation Presumption
IF one spouse gains advantage: rebuttable presumption of undue influence that can be overcome by preponderance of the evidence
Rules re: Transmutation Writing
-Personal Gift Exception: personal gifts of insubstantial nature are not subject to the writing requirement
Usual exceptions to the writing requirement
-Extrinsic evidence admissible to determine meaning of the agreement (but not statement in person’s will if person still alive)
Rules re: Transmutation Writing
-Personal Gift Exception: personal gifts of insubstantial nature are not subject to the writing requirement
Usual exceptions to the writing requirement
-Extrinsic evidence admissible to determine meaning of the agreement (but not statement in person’s will if person still alive)
