# Shared Flashcard Set

## Details

CA Comm Prop - Klueck
Community Property
7
Law
05/04/2017

Term
 How to Characterize an Asset:
Definition
 When characterizing at Date of Death/Disso (DOD), you go back to the point of acquisition and decide what it was at acquisition, CP or SP. Three elements to decide characterization: 1. Time – If acquired during marriage, presumption thatit is CP ; 2. Title; 3.Consideration.
Term
 Does changing the form of an asset change its characterization as SP or CP?
Definition
 Changing the form of an aset does not change its characterization Ex: If a CP house is sold for cash,the cash would be CP. Then, if part of the cash is spenton a car, the car would be CP and so forth.
Term
 Tracing an Asset
Definition
 The characterization of an asset is "traced" back to its characterization at its acquisition.Ex: The presently existing car is CP, b/c the cash was CP, and the cash was CP b/c the house was CP.
Term
 What is the Pereira Method of Tracing?
Definition
 Calculate the value of SP portion. Take original SP value of business or capital x reasonable rate of return over the course of the marriage. Take the current value of the business and subtract the current value of the SP. Balance of this = Current value of the CP portion of the business
Term
 What is the Van Camp Method of Tracing?
Definition
 Calculate the value of the community labor over the years. Apply the family expense presumption. Subtract family expenses from the current value of CP. Take the current value of the business and subtract the current value of CP = Current value of CP.
Term
 How is Labor characterized in CA?
Definition
 Labor performed during marriage = CP. Any compensation paid for that labor is also CP. Includes deferred compensation like 401k or pension/retirement benefits. Any assets acquired with that compensation are also CP. Debts are handled same way as assets (negative assets).Labor performed before marriage or after separation (not disso) is SP. When dividing up debts and 401ks, note what was contributed during marriage and after separation
Term
 How are gifts and inheritances characterized?
Definition
 During marriage, if acquired by gift or inheritance, this is not labor, so not CP. So this is where tracing comes in --> Need toknow characterization of prop originally.
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