Community Property -- Specific Assets**

Front 1

Specific Assets -- Business Profits

Back 1

Van Camp & Pereira -- whichever accomplishes substantial justice

Pereira (CP friendly)
-pay interest on SP --> rest is CP
(family expenses not deducted)
**when business growth because of spouse's efforts

Van Camp (SP friendly)
value of community labor - less family expenses = CP
rest is SP
***when business growth b/c of market forces

Front 2

Specific Assets -- Pensions

Back 2

EE retirement benefits accumulated during marriage, whether vested or not at time of of the divorce, are CP (prorate)

Two options for distribution:
1) "If and When Received"
2) Cash out by awarding assets of equal value

Front 3

Specific Assets -- Pensions
Awarding of Benefits

Back 3

1) "If and When Decree" - if and when received, spouse gets share
2) Cash Her Out -- award other assets of equal value

Front 4

Specific Assets -- Pensions
QDRO @ Divorce

Back 4

Qualified Domestic Relations Order

Non-participant spouse can get their share at DIVORCE

Front 5

Specific Assets -- Pensions
@ Death

Back 5

If non-participant pre-deceases participant, ERISA preempts and no interest

Front 6

Specific Assets -- Disability Pernsion/Worker's Compensation

Back 6

Treated as wage replacements

Characterized based on when received, not when earned

Front 7

Specific Assets -- Severance Pay

Back 7

Jx Split --> argue both

SOME SP as replacing earnings

SOME CP as arising from work relationship from during marriage (think about proration)

Front 8

Specific Assets -- Stock Options

Back 8

If awarded during marriage but does vest until after community has ended --> proration AND employer intent

Employer intent:
-for past services --> Hug Rule
-to incentivize staying with company --> Nelson Rule

Front 9

Specific Assets -- Stock Options
Hug Rule

Back 9

Distribution of Stock Options that were based on past service

Prorate for number of shares

Years from date of employment - date community ended
________________

Years from date of employment - date option vests



DIVISABLE AT DIVORCE

Front 10

Specific Assets -- Stock Options
Nelson Rule

Back 10

Distribution of Stock Options to incentivize to staying with company

Prorate for number of shares
Years from date option granted to date community ends
___________________
Years from date options granted to date options become exercisable

DIVISABLE AT DIVORCE

Front 11

Specific Assets -- Goodwill of Professional Practice

Valuation

Back 11

(Determined by experts, but eyeball guestimate using common sense & what would net higher amount?)

Market Sales
-what amount would goodwill net if sold today

Capitalization of Past Excess Earnings

-value of efforts during marriage and their impact on future profits

Front 12

Specific Assets -- Goodwill of Professional Practice

Back 12

To extent acquired during marriage, is CP subject to division on divorce

Goodwill = qualities that generate income beyond that derived from professional labor, r/s return on capital and physical assets; usually determined by experts

CAN'T be limited by partnership agreements!

Front 13

Specific Assets -- Educational Expenses

Back 13

Reimbursement for cost of education if the education enhanced earning capacity

Includes reimbursement for expenses before marriage but loans paid with community funds, factors to increase/ decrease reimbursement:
-more or less than 10 years
-other spouse also received CP-funded education
-spouse who received education likely to not need spousal support

Front 14

Specific Assets -- Tort Awards

Back 14

Recovered from third-party --> CP
divorce -switches back to SP to injured spouse upon divorce so long as can be traced AND was not already spent UNLESS interests of justice required otherwise
death - CP

Recovered from tortfeasor spouse --> SP of injured spouse

Front 15

Specific Assets --
Life Insurance Proceeds @ Death

Back 15

Whole life --> proportion based on community payments to premium

Term life --> proportion based on community payments to premium AFTER separation

Front 16

Specific Assets --
Life Insurance Proceeds @ Divorce

Back 16

Whole life --> prorate based on community v. separate payments

Term life --> no cash value at divorce

Front 17

Specific Assets --

Whole Life v. Term Life

Back 17

Whole life --> cash value; divisible at divorce

Term life --> no cash value (contigency-ish); no value at divorce