Community Property -- Misc (Boilerplate)**

Front 1

Tort Liability

Back 1

Generally CP assets are liable

If done for benefit of community --> CP first, SP second

If not for benefit of community --> SP first, then CP; non-tortfeasor spouse's SP cannot be reached

Front 2

Management Rules

Back 2

Equal Management Powers

Each spouse has equal management and control over property --> power to buy or sell CP and contract debts without other spouse's joinder or consent

GIFTS of CP require other spouse's consent

See Personal Belongings, Business Exceptions
Also Bank Accounts (strictly individual ones)

See also Real Property Conveyances

Front 3

Management Rules

Conveyances of Real Property

Back 3

Both spouses mustexecute written instrument conveying real property

If title in one spouse's name only --> subsequent bona fide purchaser can take for consideration

BFP has no notice of other spouse --> 1 year SOL to void transfer

BFP has notice of other spouse --> no SOL

Non-transferring spouse can:
1) Ask for half of proceeds from sale

2) Void transaction (pay subsequent purchaser for paid amount) and get RP back

Front 4

Management Rules Exceptions

Back 4

Personal Belongings: Cannot sell or encumber personal property or community furniture without consent of spouse
--> transaction voidable by other spouse at any time -- do not have to pay back whoever got the property

Business Exception: If spouse operates all or substantially all of business, they have management + control UNLESS to sell, lease, or encumber substantially all (they need consent to do so)

Front 5

Creditors' Rights -- Generally

Back 5

Creditors can reach the debtor spouse’s SP and all of the CP for debts incurred before or during marriage.

A nondebtor spouse, however, is not responsible for SP earnings
(1) held in separate bank account
(2) not commingled;
(3) where debtor has no withdrawal rights.

Front 6

Creditors' Rights -- Necessaries of Life

Back 6

Nondebtor’s SP is liable for necessaries

food, shelter, med expenses, incurred by debtor spouse during marriage

IF CP funds available to pay for medical bills, SP can be reimbursed with those funds

Front 7

Creditors' Rights -- @ Divorce

Back 7

After divorce, credit cannot reach CP awarded to a spouse (that becomes their SP) unless court assigns debt to that spouse

Front 8

Creditor's Rights - @ Death
Probate

Back 8

Probate Code requires debt of a decedent be characterized as CP or SP and deducted from the appropriate classification

Front 9

Creditors Rights - @ death
Non-Probate

Back 9

(set-aside law)

Surviving spouse personally liable for all of SP's debts through CP and SP

Front 10

Multistate/Conflict of Laws

(QCP)

Back 10

Property acquired while domiciled in non-community property state that would have been community property if couple domiciled in CA --> quasi-community property (QCP)

Generally treated as SP during marriage (except for debt collection -- creditors can reach as QCP)

@ divorce -- split 50% - 50%

@ death
depends on whether acquiring/non-acquiring spouse:
Acquiring spouse obviously gets at least 50%

BUT if acquiring spouse dies before non-acquiring spouse --> non-acquiring spouse gets all

BUT if acquiring spouse survives non-acquiring spouse -->
non-acquiring spouse gets nothing

Front 11

Multistate/Situs

Back 11

Court can award 50-50 split by: 1) assigning other property show split effectuated
2) ordering party with title in another state to sell property and divide profits

Front 12

Property Acquired Outside Marital Relation --
Common Law Situations

Back 12

CA does not recognize common law marriage but enforces common law marriages validly contracted to in other states

Property acquired during those non-CA valid common law marriages is quasi-marital property (treated as CP)

(QMP)

Front 13

Marvin situations

Back 13

K law governs

express/implied from conduct

NOT INCLUDED: sexual service Ks (against public policy)

Front 14

Putative Spouse

Back 14

No valid marriage existed, however spouse believed they were married.

Property acquired during putative spouse relationship is quasi-marital property (treated as CP) IF:

1) reasonably objective 2) good faith belief in marriage
3) solemnization

Front 15

Essay Boilerplate

Back 15

California is a Community Property state. In California, there is a community property presumption where assets acquired during marriage are assumed community property. There are four separate categories that do not fall into this presumption. They are (before, gifts, wills/inheritance, separate property).

The characterization of an asset as community or separate property depends on three factors: 1) the source of an item, 2) actions of the parties that may have altered the character of the item, and 3) statutory presumptions affecting the item.

Front 16

Setting Aside Judgment on Property Distribution

CCP 473(b)

Back 16

No time limit:

extrinsic fraud (not allowing party to testify)
extrinsic mistake (inability to testify because of issue outside of proceeding)
duress

Within 6 mos. from judgment:

intrinsic fraud (making stuff up)
intrinsic mistake (basic misunderstanding of terms)

Front 17

Setting Aside Judgment on Property Distribution

CFC

Back 17

Within (one) year:

actual fraud
perjury
mistake
non-disclosure (time starts running upon discovery)

Within (two) years:

duress
mental incapacity

With exception of non-disclosure, time starts running upon judgment

Front 18

Management Rules --
Fiduciary Duty

Back 18

Duties

1) fiduciary standard = gross negligence/recklessness that results in substantial impairment

2) includes duty to account

3) consent required when gifts, personal belongings, and substantial transactions

Front 19

Rights to Reimbursement
SOL

Back 19

3 years upon discovery of reimburseable transaction

OR

@ death/divorce