Management + Control of CP

Question 1

Bank Accounts

Answer 1

If in one spouse’s name, access limited to that spouse

Question 2

Gifts to Third Parties

Answer 2

Cannot gift CP dwelling, furniture, furnishings, or family clothing w/o written consent (note: can sell for reasonable value).

Remedy during marriage:
- Non-consenting spouse can ratify gift or revoke gift and sue to recover property

Remedy upon divorce/donor’s death:
- May ratify or void gift, but recovery against gift recipient will be limited to 1/2 CP share

Question 3

CP Business Assets

Answer 3

• Managing spouse has primary management and control over biz
• Prior written notice to other spouse required before sale, lease, exchange, or encumbrance of all or substantially all of personal property used in biz

Remedy
- Sue for breach of fiduciary duty if managing spouse detrimentally impacted CP

Question 4

Real Property

Answer 4

Requirements:
- Both spouses must sign any instrument where community real property is sold, conveyed, encumbered, or lease for a period of more than 1 year

Attorney Lien Exception:
- One spouse may encumber her interest in CP real property for payment of attorney’s fees for annulment, divorce, or separation proceedings

Titled Only in One Spouse’s Name?
- Transfer to BFP is presumed valid, but is subject to recovery of non consenting spouse (must refund BFP)

Remedies:

• During marriage, non consenting spouse has 1 year to void a transfer (and refund BFP) or may sue other spouse for breach of fid duty
• Upon divorce, recovery limited to renegade spouse’s 1/2 CP interest