Community Property

Question 1

Putative spouse definition

Answer 1

One spouse has a good faith belief there is a valid marriage. Putative spouses has CP rights until the moment they obtain actual knowledge that they are not in a valid marriage.

Question 2

Quasi-Marital Property

Answer 2

All property that would be considered CP if there was a valid marriage. Putative spouse is entitled to half.

Question 3

Premarital agreements are valid if: (2)

Answer 3

They are written and signed by both parties; they are not unconscionable at the time execution

Question 4

CP Presumption

Answer 4

Any asset acquired or income earned by a married person while living with their spouse in California

Question 5

SP Presumption

Answer 5

Property acquired before marriage, after divorce/permanent separation, or by gift or inheritance

Question 6

Anti-Lucas Legislation (3)

Answer 6

Jointly held property acquired during marriage is presumed to be CP upon divorce. A spouse who spends SP to obtain CP has a right to reimbursement for the amount of contribution BUT NOT the increase in value

Question 7

Personal gifts of tangible property: CP or SP?

Answer 7

Typically considered SP of the receiving spouse if it is (a) personal in nature (b) used principally by the receiving spouse, UNLESS it’s substantial in value relative to the couple’s income. Then, it’ll be SP of the giving spouse.

Question 8

Transmutation definition

Answer 8

Changing property from SP to CP, vice versa, etc.

Question 9

When will a transmutation be valid? (3)

Answer 9

(a) in writing (b) signed by party adversely affected (c) expressly states that ownership is changing. EXCEPTIONS: tangible gifts not of a substantial value

Question 10

Fiduciary duties + remedy for breach

Answer 10

Each spouse has the highest duty of care to the other and are fiduciaries to one another. Breach = innocent spouse gets greater share of CP

Question 11

Equal rights and management definition

Answer 11

Both spouses have equal rights to participate in decisions regarding CP.

Question 12

Right to reimbursements for improvements? (3)

Answer 12

SP improving other SP; SP improving CP; CP improving SP (get either reimbursement or increased value)

Question 13

Credit/Loan: right to reimbursement?

Answer 13

If the CP was collateral for the loan, the CP gets reimbursement for the loan or increased value of the property

Question 14

Direct tracing (commingled bank account)

Answer 14

The spouse claiming SP must show there were sufficient SP funds to purchase the asset, and intended to use SP funds

Question 15

Exhaustion method (commingled bank account)

Answer 15

The spouse claiming SP proves the CP funds in account were already exhausted when asset was purchased

Question 16

Educational degree: CP’s right to reimbursement expires after how long?

Answer 16

10 years; then, presumed that the community has benefitted

Question 17

Distribution of Property Upon Divorce/Death

Answer 17

Equal division of CP, unless fairness requires otherwise. (Look for other heirs to see if surviving spouse can get some or all of SP)

Question 18

Debt before marriage? CP or SP?

Answer 18

CP, BUT upon divorce, is SP

Question 19

When will a debt during marriage NOT be CP upon divorce?

Answer 19

When the debt was not for the benefit of the community

Question 20

Debts for necessaries of life

Answer 20

CP and SP are liable, even if the spouses are living apart

Question 21

Child and Spousal Support

Answer 21

CP liable unless (a) non-debtor spouse puts earnings in separate bank account (b) spouse has SP to pay for obligation but uses CP

Question 22

When will the CP be liable in tort?

Answer 22

When the spouse committed the tort while acting for the benefit of the community

Question 23

Is a spouse’s credit score viewed as a community asset?

Answer 23

YES

Question 24

Transmutation by deed

Answer 24

Typically satisfies the writing requirement IF signed by the adversely affected party

Question 25

Can personal property be half CP and half SP?

Answer 25

Yes! Trace the source money

Question 26

Permanent separation occurs when:

Answer 26

One spouse expressly informs intent to end marriage and takes consistent conduct with that intent

Question 27

Permanent separation occurs when:

Answer 27

One spouse expressly informs intent to end marriage and takes consistent conduct with that intent

Question 28

Tort damages go where upon divorce?

Answer 28

All to the injured spouse, unless justice requires otherwise

Question 29

Stock options: CP or SP?

Answer 29

If they accrue during marriage, the gift has an apportioned interest in the stock options, even if they’re not exercisable until after marriage. If replace earnings after divorce/separation, SP.