Legal Analysis - Community Property

Front 1

a. All property acquired during the marriage is presumed to be community property.

Back 1

community property

Front 2

a. Property acquired before marriage or after permanent separation is presumed to be separate property. In addition, property acquired by gift, devise or bequest is presumed to be separate property. Likewise, all income, rents, and profits of separate property are presumed to be separate property.

Back 2

seperate property

Front 3

a. At the time the contract was executed, this will determine whether separate property or community property.

Back 3

contract

Front 4

a. When the cause of action arose will determine separate or community property.

Back 4

personal injury

Front 5

a. Anytime federal asset is involved think preemption.
b. Pensions are CP or SP depending on when they are earned.
i. A pension earned prior to marriage is SP.
ii. A pension earned during marriage is CP
iii. If pension is earned both before and during the marriage, “TIME RULE” applies regardless of when the pension actually vests.
1. Time Rule: is applied to determine the respective share of ownership ► marital years when earned / total number of years earned = CP.

Back 5

pensions

Front 6

a. Disability payments are CP to the extent they replace wages earned during marriage. They are SP to the extent that they replace wages after the marriage has terminated.

Back 6

disability

Front 7

a. Rule: A degree received during marriage is not a CP asset. The community, however, will be entitled to reimbursement for tuition unless the spouse who received the degree can demonstrate that the community has already substantially benefited. There is a rebuttable presumption that the community has not substantially benefited if less than 10 years have passed since the degree was awarded.

Back 7

education

Front 8

i. CP is entitled to reimbursement for CP expenditures toward the education.
ii. Right of reimbursement will be reduced or denied if:
1. the community has already substantially benefited from the education
a. If less than 10 years have passed b/w community contributions and time of divorce, there is a rebuttable presumption that community has not substantially benefited from the education.
b. If more than 10 years have passed, there’s a presumption that community has substantially benefited.
2. If the other spouse received comparable CP funded education
3. The educated spouses need for spousal support has been substantially reduced by the education
iii. Outstanding loans at divorce are solely the responsibility of educated spouse.
iv. No reimbursement for living expenses and the like.

Back 8

education upon divorce

Front 9

a. When it was generated determines whether it is community property or separate property. It is characterized as community property to the extent that it was generated during marriage.

Back 9

business goodwill

Front 10

a. Apportionment of a separate business brought into the marriage by one spouse. Developed during the marriage then community property.

Back 10

business profits

Front 11

1. Rule: When the character of the business is the primary reason for its growth.
2. Equation: Value the manager service at going market value and subtract the family expenses paid out of the business profits and this equals the community property share

Back 11

business profits: van camp

Front 12

1. Rule: when the principal reason for the increase is the labor of the working spouse.
2. Equation: We first impute the fair rate of return (10%) on separate property and add this to the separate property principal and this give us the separate property and the remainder will be community property.

Back 12

business profits: pereira

Front 13

a. Proportional to the extent that it reduced the principle

Back 13

community property to pay off seperate property

Front 14

a. To improve Spouses Assets, it will be presumed to be a gift.
b. To improve My Own Assets, community is entitled to the greater of, cost of improvement or increase in value.

Back 14

CP to make improvements of seperate property

Front 15

a. General rule: creditor is entitled to anything the debtor has a legal right to manage and control, so all cp and sp.
b. Was the debt incurred when they had Community Assets during the marriage.
i. For contracts when the contract is made
ii. Tort when the tort is committed.

Back 15

creditors

Front 16

a. It is considered a pre marriage debt.

Back 16

child and spousal support

Front 17

a. Before marriage; debtors separate property and all community property
b. During marriage: same rule as above, except if it is for necessaries for life can also go after non debtors spouses separate property.
XV. The order that can satisfy a judgment
a. Something done for the benefit of the community: start with community property money, then debtor separate property, then non debtor separate property.

Back 17

what can you use to satisfy debt

Front 18

a. Statute of Frauds Applies (writing, signed by both parties)
b. Also detrimental of Reliance

Back 18

prenuptual agreement

Front 19

i. promote divorce
ii. not voluntary, or
1. There no representation by independent council or told in writing to seek independent council which they waived,
2. 7 days before it’s signed, they have to be presented with an agreement and told to seek independent council.
3. If they are not represented they have to be fully informed in writing of the terms and writes they are giving up and they have to be proficient in the language of the document and the language of explanation.
4. There is no duress, fraud, or undue influence, and
5. Anything else the court deems relevant for involuntariness.
iii. Unconscionable when executed plus no adequate disclosure.

Back 19

prenuptial agreement unenforceable if

Front 20

a. If you have joint title of unequal contribution, all jointly held title is presumed community property unless,
i. there is a collateral written agreement,
ii. Or a statement in documentary evidence of title that it is separate property.
1. Separate property contributions are then reimbursed without interest and without depreciation.

Back 20

agreements inferred from title

Front 21

a. If there is a conflict with federal law, California law is preempted.

Back 21

preemptions

Front 22

a. Is all property acquired by either spouse that would have been community property if the spouse who had been domiciled in California or another community property state at the time of acquisition. Occurs at death or divorce

Back 22

quasi community property