Basic Principles
The economic community ends upon permanent physical ____ and ____ of an ____ to not resume marital relations.
Separation
Communication
Intent
Personal injury awards are ___ property if the cause of action arose during the marriage. If it arose before marriage or after permanent separation, the award is ___ property. At divorce, personal injury awards are awarded to the ___ spouse unless the interest of justice requires otherwise.
Community
Separate
Injured
When title is taken in joint form but purchased or improved by both community and separate funds, the separate property contributor is presumed to have made a ___ to the ___. This is called the __ __. The presumption can be overcome by ___ or ___ agreement.
Gift/ Community
Lucas Rule
Oral or Written
The __ rule does not apply to ___ ___ ___ (accounts containing both community and separate funds that are held in joint form). The probate code, however, allows full ___ of ___ funds by the ___ method or the ___ ___ method.
Lucas
Commingled Bank Accounts
Tracing/ Separate
Exhaustion Method
Direct Tracing Method
If a spouse's will leaves CP or QCP to a third party and the remainder to the surviving spouse, the surviving spouse must elect to either: (1) ___ under the will, or (2) ___ against the will. This is called the ___ ___ will.
Take
Widow's Election
Each spouse has equal management and control over all community property and has the full power to __ or __ community property __ the other spouse's ___. The three exceptions are: (1) ___ Exception, (2) __ __ Exception, and (3) ___ of Community Real Property.
Buy or Sell/ Without/ Consent
(1) Business
(2) Personal Belongings
(3) Conveyances
Retirement benefits are ___ property if earned during the marriage. If earned before and during the marriage, courts use the ___ ___ to determine how much of the pension is attributable to CP and SP labor. If the pension plan is not yet eligible for retirement at the time of divorce, the court can: (1) ___ a "when and if received" decree, (2) __ __ the other spouse by awarding other CP assets of equal value, or (3) ___ jurisdiction and decide what to do upon retirement.
Community
Time Rule
(1) Issue
(2) Cash Out
(3) Retain
A ____ is an agreement between spouses to ___ the character of an ___ or a series of ____. As of ____, a _____ must be in writing explicitly stating the ___ in ____ being made and ____ by the party whose interest is adversely affected.
Transmutation/ Change
Asset/ Assets
1985
Transmutation/ Change/ Ownership
Signed
The two methods used to determine the value added by the managing spouse's labor are: (1) __ __ , which is used when the __ in value of a business is due to the ___ spouse's ___ ___ and ___/effort; and (2) __ __, which is used when the ___ in value of a business is due to the ___ of the business or a ___ asset.
Pereira Method
Personal Skills and Labor
VanCamp Method
Increase/ Character/ Valuable
At divorce, the ___ ___ assets are ___ divided in kind unless some special rule requires deviation. At death, the decedent can bequeath all of her ___ ___ and one __ of the ___ ___. If the decedent dies intestate, the surviving spouse is entitled to the decedent's share of the __ __ __ the decedents separate property.
Separate Property/ One Half/ Community Property
Community Property/ And
All property owned by the person ___ marriage; all property acquired by the person ___ marriage by ___, ___, ___, or ___; all property acquired ___ marriage with the expenditure of ____ funds; and the ___, issues , ___ and capital gain from ___ property. This is called ____ property.
Before/ After
Gift/ Bequest/ Devise or Descent
During/ Separate
Rents/ Profits
Separate
In the case of when a life insurance policy was paid with CP funds and names a beneficiary, upon the death of the insured spouse, the named beneficiary will receive ___ of the life insurance proceeds. The surviving spouse will receive ___ of the life insurance proceeds. If paid with both CP and SP funds, the courts employ the ___ __ rule to apportion the CP ownership interest in the policy. This is called __ __ __.
Half/ Half
Buy-In
Whole Life Insurance
____ agreements must be in writing and signed by both parties. ____ agreements are unenforceable unless the court finds that the challenging party was: (1) ___ by ___ ___ at the time the agreement was signed, (2) given at least ___ ___ to sign, and (3) if not ____ by ____, was ___ ___ in ____ and in ___ language of the terms and basic effect of the agreement.
Prenuptial
Represented by Independent Legal Counsel
Seven Days
Represented by Counsel
Fully Informed in Writing/ Plain
Education and training acquired during marriage ___ treated as community property. Upon divorce, the community has an ___ right to ___ with ___ for community property funds that were used to pay for the education/training if the training ___ __ the __ ___ of the spouse (subject to any equitable defenses)
Aren't
Equitable/ Right to Reimbursement
With Interest
Substantially Enhanced/ Earning Capacity
All the __ __ and the debtor's __ __ are liable for a debt incurred __ marriage (the other spouse's SP is not liable). However, earnings of the non-debtor spouse that are CP __ be reached for premarital debts if held in a separate account and not ___.
Community Property/ Separate Property/ Before
Cannot/ Commingled
A __ __ enters into a marriage that later turns out to be invalid and has an objectively ___ and ___ ___ belief that the ___ was ___. If someone is labeled as a __ __, all assets acquired by the couple that would be CP or quasi-CP are labeled __ __ __ and are treated the __ as ___ ___.
Putative Spouse
Reasonable/ Good Faith
Marriage/ Valid
Putative Spouse/ Quasi-Marital Property
Same/ Community Property
Courts are split when determining severance pay upon divorce. Some courts hold that severance pay is separate property because it replaces __ __ that would be the spouse's __ __. Other courts hold that severance pay is community property because it arises from a __ __ __ and this is earned by employment during the marriage.
Lost Earnings/ Separate Property
Collective Bargaining Agreement
For purposes of ____, property acquired during the marriage in joint and equal form is presumptively ___ property. This is called the __ __ __. This presumption may on be rebutted by: (1) an ___ statement in the __ or other instrument of title; or (2) a ___ agreement by the parties.
Divorce
Community
Anti-Lucas Rule
Express/ Deed
Written
Equitable defenses to reimbursement for educational/training expenses include: (1) the community has already __ __ from the ___ of the educated spouse (more than 10yr rebuttable presumption); (2) the other spouse also ___ a __ __ __; and (3) the education was obtained by a spouse seeking ___ support and the education enabled her to __ the amount ___ for ___ support.
(1) Substantially Benefited / Earnings
(2) Received a Community Funded Education
(3) Spousal/ Reduce/ Needed/ Spousal
Absent a property settlement agreement, all community property must be divided equally with no consideration of the ___ capacity of each spouse. Disparity in ___ capacity can only be considered as to ___ ___ (alimony).
Earning
Spousal Support
The characterization of an asset as CP or SP depends on three factors: (1) the ___ of the item,(2) ___ taken by the parties that may have ___ the character of the item, and (3) any ____ ____ ___ the item.
(1) Source
(2) Actions/ Altered
(3) Statutory Presumptions Affecting
Stock options can be either SP or CP depending on when they were earned. In the Marriage of Nelson, stock options are awarded as an ___ to ___ with the ___. In the Marriage of Hug, stock options are awarded primarily to ___ for ___ ___ as a form of ___ ___.
Marriage of Nelson: Incentive to Stay with the Company
Marriage of Hug: Reward for Past Services as a form of Deferred Compensation
Upon __ or __, the ___ estate takes a __ __ portion of the property, measured by the __ (percentage) of __ __ __ (the amount the loan is reduced by) attributable to the expenditure of __ funds (not including payments of mortgage interest, property taxes, insurance premiums, etc.)
Death or Divorce
Community/ Pro-Rata
Amount of Principal Debt Reduction
Community
Where damages are recovered from a third-party tortfeasor, the recovery is ___ ___. Upon __ __ or __, the recovery is the ___ ___ of the ___ spouse, unless the recovery is (1) ___ with other ___ ___, or (2) the interests of ___ requires otherwise. Upon __, the recovery will be treated as __ __ and whoever __ first can only devise his or her half share of the recovery.
Community Property/ Legal Separation/ Divorce
Separate Property/ Injured
(1) Commingled/ Community Property
(2) Justice
Death/ Community Property/ Dies
___ ___ property is property acquired by ___ spouse that would have been community property had the spouse been ___ in California at the time of ____. QCP is treated like ___ property at divorce, but remains ___ property during marriage except as to ____' rights.
Quasi-Community/ Either
Domiciled/ Acquisition
Community/ Separate
Creditors'