Community Property Part 1
______ _______ Awards are ________ if the cause of action arose _______ marriage. If the cause of action arose ________ the marriage, or after the ________ ________, the award is ______. At divorce, CP _______ _______ awards will be awarded entirely to the injured spouse, unless the ______ of _________ _________ otherwise. Personal injury ________ other spouse are SP of injured spouse.
Personal Injury / CP
during
prior
legal separation
interest / justice requires
against
Are either Community Property or Separate Property depending on the time they were earned
Stock Options
Each contribution is apportioned by the percentage of the contribution of the purchase price. At divorce, SP is entitled to actual contribution to the purchase price, plus the percentage of the appreciation and the CP is entitled to its contribution to the purchase price plus its relative proportion of appreciation.
Property Acquired Using Separate Property and Community Property Funds
At ______________ the CP assets will be equally divided unless some special rule / exception applies.
At _________ all SP and 1/2 the CP may be ________.
Divorce
Death / bequeathed
1. Must be in Writing /signed by both parties voluntary / communicated in language understood
2.Independent Counsel Review / 7 day wait
3. Plain language explaining terms and basic effect
Valid Pre Marital Agreement
__________ _____________ are CP if earned during the ________ of the __________. Courts will use the __________ _____________ to determine how much pension is attributable to _________ ___________ and how much is attributable to __________ _______.
Retirement Benefits
course / marriage
time / rule
CP labor / SP labor
________ ________ awarded primarily to reward for past services as a form of deferred compensation.
Stock Options
Marriage of Hug
Presumption when a spouse uses CP to benefit the SP of the other Spouse
Exception:
When a Spouse uses CP to benefit the Spouse's own SP, the community is entitled to reimbursement or the increase in value of the SP, whichever is greater
Gift
When a married couple takes title in joint equal form, it is inconsistent with the preservation of a SP interest in the asset. Any SP used to acquire the asset is presumed to be a gift of SP unless there is an oral or written agreement to the contrary.
Lucas Doctrine
To be enforceable must be in writing, with explicit declaration stating
___________ in ____________ and __________ by party whose _____________ is adversely affected.
Valid Transmutation
Formula for determining amount earned during the community is years married divided y years pension earned = CP.
Formula for Time Rule
___________ __________ awarded as an incentive to stay with the company.
Stock Options
Marriage of Nelson
When CP funds or labor enhances the value of a SP business, the courts will apply ___________ or _________ .
Van Camp / Pereira
Spouses have equal management and control of this
Bonus: Name the 5 Exceptions
All Community Assets
1. Community Real Property, both spouses must execute conveyance
2. Non-signing spouse may bring action to void transfer, w/n 1 year
3. Personal belongings of other spouse (need written consent)
4. Primary management and control of a business
5. No joint control of a bank account in the name of 1 spouse only
Applies when property is taken in a married woman's name alone prior to 1975. Property held in a married woman's name alone, or in her name and a 3rd party's name, is presumed to be the married woman's separate property.
Married Woman's Special Presumption
Are either CP or SP depending on he wages they are designed to replace. If taken in lieu of retirement benefits, then will be treated same as retirement benefits.
Disability & Workers Compensation Benefits
Has no investment feature, so courts old that it has no value upon divorce. Upon death, courts will employ the apportionment method or hold that the characterization of the final premium payment will determine whether the proceeds are CP or SP. If purchased w/ community funds, the survivor automatically gets 1/2 of the face value as her share of community property. The balance is distributed according to the policy's beneficiary clause.
Term Life Insurance
Calculates the CP portion of a SP business when the character of the business was the primary reason for its growth or productivity.
Bonus: Explain Van Camp Method
Van Camp
The Community interest is equal to a fair salary for the community labor over the course of the business (fair salary times number of years of marriage) less any actual salary earned and amounts paid for community expenses. The balance is the SP share.
_____________ and ______________ acquired during marriage are not treated as CP. Instead, upon ________ the community has an ____________ ________ of ______________ including interest, when CP funds are used to _______ and the _______ _________ of the spouse is substantially __________ .
Education / Training
Divorce
Equitable Right / Reimbursement
pay
earning capacity
enhanced
Creditor can reach a debtor spouse's _______ and all _______ to satisfy debts incurred before and during marriage.
CP is _______ to creditor after ________ or legal _______, unless that spouse is ___________ liable.
_______ ________ attaches to CP 1st, then tortfeasors SP, if the tort was committed for benefit of community. If personal _______ then _______ SP must be ___________ before creditor can ________ _______ ________.
SP / CP
Unavailable / divorce / separation / personally
Tort liability / tort / tortfeasors / exhausted / reach /community property
If _________ ____________ resembles a retirement pension because it was earned through employment during the marriage, the _____________ is treated like ____________. If _______ is intended to replace __________ ____________, it is treated like ___________ ____________ after divorce or permanent separation.
Severance Pay
Severance
Community Property
Severance
Lost earnings
Separate Property
Upon the death of an insured spouse, the 3rd party beneficiary and the surviving spouse each get 1/2 of whole life insurance proceeds if he policy was paid with CP funds. If the policy was paid for with CP AND SP funds, courts employ the buy-in rule to apportion the CP ownership interest in the policy.
Whole Life Insurance
Calculates the CP portion of a SP business when the personal skills and effort of the managing spouse increased the value of the business.
Bonus: Explain Pereira Method
Pereira
The value of the Separate property is equal to the fair market value of the business at the time of marriage plus a fair rate of return (10%) during the course of the marriage. Community property is equal to the fair market value at dissolution minus the initial value and the rate of return.
Treated as married couples in California.
General contract principles apply; no evidence of intention to enter a lawful marriage.
Good faith Belief in validity of marriage (Bonus: What is the name of property accumulated during this type of relationship)
Registered Domestic Partnerships
Cohabitation
Putative Spouse - Quasi marital Property
Not presumptively CP; burden of proof is on SP proponent to show that SP funds were used to purchase the asset.
Bonus:
Name 2 methods to account for the above and explain how they work
Joint Bank Accounts w/ Commingled SP and CP
Exhaustion Method - SP claiming spouse shows that CP funds in account were exhausted by payment of family expenses from the account
Tracing Method - SP claiming spouse shows that CP funds were available at all times and that he intended to keep inheritance separate from community funds.