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California Marital Property
n/a
67
Law
Professional
04/27/2010

Additional Law Flashcards

 


 

Cards

Term
1986 Premarital Agreement Act
Definition
Required all agreements to be in writing and signed by both parties. Subject to the statute of frauds exceptions.
Term
Statute Of Frauds Exceptions to Premarital Agreement Writing Requirement
Definition

1. Promissory Estoppel: Party seeking enforcement performed his/her part of the bargain and changed thier position in reliance

2. Full Performance: The husband promised the wife that if she married him he would make her the beneficiary on his life insurance, followed through, but then changed it to his kids. Enforcable.

Term
Subjects of Premarital Agreements
Definition

Permissible: property; choice of law; rights and obligations not in voilation of public policy

Non permissible: Child support is specifically prohibited

Term

Support Waivers in Premarital Agreements

1986-2002 

Definition

Waivers are not expressly in violation of public policy as long as they are:

 voluntary

conscionable at the time of excecution

fair and reasonable disclosure of assets

Term
Marriage of Pendelton
Definition
Supreme Court Held that support waivers made by intellegent, well educated persons each of whom appears to be self sufficient in property and earning ability are not per se unenforcable
Term
Marriage Of Bonds
Definition
Wife challenged voluntariness of agreement. Court said while representation of indepedant legal counsel is a factor, it is only one factor. Not determative of voluntariness
Term

2002 Premarital Agreement Act Amendments

Definition

Premarital agreements will not be enforcable unless:

1. Represented by independant legal counsel.

2. Conscionable at the time of enforcement.

 

Will not be deemed voluntary unless:

1. Represented by independant legal counsel OR

2. Expressly waived right in writing

a. If so, the party waiving counsel must be fully informed of the terms and effect of the agreement, in writing

3. Not Less than 7 calendar days between first presented and advised to see counsel and time signed

Term
Transmutation Prior to 1985
Definition

Easy transmutation, conversation, behavior

Nothing written needed.

Term
Estate of Raphael
Definition
Oral transmutation of object. Widow claimed husband said that everything was thiers 50/50.
Term

Estate of Jafeman

(Transmutation)

Definition
Wife claimed that husband always refered to the house as "our home". Wife had a belief that it was community property. BUT it must be the intent of the spouse who's interest was affected that controlled. The wife's belief and intent are irrelevant.  
Term
Transmutation 1985 to Present
Definition

** Critical time is the date of the alleged transmutation not the date of acquisition of property**

1. Must be in writing by express declaration

*consent forms are not enough*

2. Spouse whoes interest is adversely affected must make the writing

3. Oral agreements and conduct will not change the character of the property

**No extrinsic evidence to supplement the writing**

Term

Extrinsic Evidence of Transmutation

Benson v. Benson

Definition

NOT ALLOWED!

Rather than using transmutation a spouse could alternately claim that they breached ther fiduciary duty by taking unfair advantage of the other spouse.

Term
Gift Exception to Transmuatation Writing Requirement
Definition

Excludes certain gifts from the express declaration requirement. Must be:

- A gift between the spouses of a personal nature (apparel, jewelry)

- Used solely or primarily by spouse to whom gift was made

- Not in substantial value taking into consideration teh circumstances of the marriage

Term
Statment in a Will
Definition
Can effect a transmutation Holds up as an express declaration. NOT evidence of a transmuation before death
Term
General Community Property Presumption
Definition
Property acquired during the marriage is presumed to be community property
Term
Lynam v. Vorwerk
Definition
Property possessed during the marriage can be presumed to be community property when there is limited evidence of the source of the funds
Term
Effects of Title:
Definition

1. Property titled in one spouse's name is treated differently from property titled in both spouse's names

(i.e. acquired interest v. reimbursement)

2. However, that title does not mean that it is the seperate property of the named spouse.

(Source of funds and intent control)

Term
Apportionment
Definition
Character starts with the general presumption of community property, but when both community and seperate funds are use to purchase property it can acquire mixed character (unless titled jointly). The proportion of the characterization is the proportion that that type of property contributed to the purchase price. Appreciation is also characterized accordingly.
Term
Married Woman's Special Presumption
Definition

Property acquired prior to 1/1/1975 by a married woman in her name (including joint tenancy), is deemed to be her separate property.

- Arrised from the TITLE in woman's name

- Is rebutted by the intent of the husband

Putting property in woman's name alone signified a gift of community property to her. Husband maintained full control of CP.

Term

Joint Property Acquired During Marriage

post 1984

Definition

- Presumed to be community property at divorce.

- Only rebutted by another agreement

- Right to reimbursement for SP contributions to the CP acquisition or improvement.  (Without interest)

- Joint tennancy required writing to rebut the presumption (other forms of joint title after 1987)

Term

Marriage of Lucas

(pre 1984)

Definition

A seperate property contributor could only get reimbursement if there is an agreement between the parties to that effect (oral or written)

 

Oral or implied agreements about the character of the property will suffice

Term
Joint Tenancy At Death
Definition
Will presumed to be titled in joint tenancy not community property
Term

Property Titled as Community Property

 

Definition

Are presumed to be community property.

Rebuttal:

1. Before 1987: Same as prior to 1984 joint tenancy

- Oral agreements with regard to rebuttal are enforcable

 

 

2. Post: incorporated the 1984 joint title amendments with regard to the community property titles 

- Must be in writing

Term

Community Property Title 

Right to Reimbursement

Definition
1984 is still the effective date for reimbursements to titles of community property
Term
Community Propery With a Right of Survivorship
Definition

**Effective Date 2001**

Would be considered community property at divorce. Right of survivorship exists at death.

Term
Improvements to community property made with seperate property funds
Definition
Have a right to reimbursement
Term
Improvements to one Spouse's SP with CP
Definition

 

1. apparently selfless act is presumed a gift to the other spouse

2. An apparently selfish transfer to own SP, presume reimbursement  

Term
SP funds improve other spouse SP
Definition

1. Pre 2005: If a husband uses his SP funds to improve wife's SP, presumed gift

2. Post 2005: Legislature changed the code to presume reimbursement

(unless written waiver)

 

3.

Term
Family Expenses
Definition

Food, rent, vacations, medical and dental

**do not result in the acquistion of property**

Term
Family Expense Presumptions
Definition

1. Available CP funds are presumed to pay for family expenses

2. SP funds are only used when CP funds are ehausted.

3. When SP funds are used. There is no right to reimbusement unless the parties have some sort of agreement

Term
Exhaustion Method of Tracing
Definition

"See v. See"

Tracing approach for a commingled bank account. Seperate property proponent can rebut the CP presumptio if at teh time of acquisition all community income would have been exhausted. The SP proponent assumes the burden of keeping adequate records,

Term
Total Recapitulation
Definition

Method to rebut CP presumption by showing that there was an excess of CP expenses over CP income over the entire length of the marriage and thus all property is  SP.

Only allowed where, through no fault of the spouse, it is not possible to acertain the balance of income and expendatures at that time

"See v. See"

Term

Direct Tracing

 

Definition

"Marriage of Mix"

Method preferred by the SP proponent. Only need to show that the SP funds were available and intended to make a SP purchase

Level of acceptance is in question, courts generally prefer exhaustion method

Term
Marriage of Frick
Definition
Court affirmed the need to keep adequate records if commingled accounts are used to purchase SP. Another burden in using the direct tracing method.
Term
Professional Goodwill
Definition
Probability that a business will continue in the future as in the past, adding to the profits. Taken into consideration in determining the ommunity property award. Value is seperate and apart from the expectation of the souse's future earnings. +
Term
Capitalization
Definition
Method of valuing professional goodwill. Account past earnings and project into the future.
Term

Educational Degrees, Short Marriages

Remedies to Non Professional Spouses

Definition

1. With the degree goes the debt

2. Reimbursement to the community  for direct educational expenses or debts. Including interest at the legal rate. 

3. Community can be reimbursed for payments of a loan incurred by the other spouse prior to the marriage.

Term
Professional Degrees: Long Term Marriages
Definition
For marriages greater than 10 years, it is presumed that the non professional spouse benefited because of the incresed contribution to the community property. Any inequity can be remedied by dividing this property. Also, spousal support if non professional spouse did not work.
Term
Professional Degrees and Earning Capacity
Definition
The code does not provide reimbusement for training that does not substantially enhance the earning capacity of the spouse seeking the education. If not, community contribution is considered a gift.
Term
Pensions
Definition
Defined as deferred compensation. Vested pensions are community property. ("Marriage of Brown") Recently unvested pensions have also been considered CP even if it is an "expectancy"
Term
Disability Benefits
Definition
Disability benefits are CP when they are in place of earnings. Any additional payment greater than wages is considered compensation for personal anguish and is SP.
Term
Seperate Property Buisness
Definition

The effort that the spouse owning the SP business expended on the business during the marraige is actually community effort and it needs to be compensated.

2 Formulas:

1.Pereira

2. Van Camp

Term
Pereira Approach
Definition

Used if: If the increase in value can be attributed to the community effort (Even if only the SP owners effort)

Method: Apportions the profits by allocating a "fair return" on the seperate property investment and allocating "any excess" to the community

Usually 10% unless different rate is proven

Usually favors the community

Term
Van Camp Approach
Definition

Used When: The increase in value can be attributed to something other than the community effort.

Method: Determine the reasonable value of the spouse's services, allcocates as community property. The remainder is deemed SP

Favors the SP owner

 

Term

Credit Acquisitions

 

 

Definition
Credit acquisitions during the marriage are characterized by determining the intent of the lender
Term
Gudelj v. Gudelj
Definition
If there is no evidence that the lender or seller relied primarily on the purchaser's seperate property, the CP presumption stands
Term

Marriage of Grinius

(More recent case)

Definition
CP presumption can only be rebutted by showing that the lender intended to rely solely on the SP
Term
Affect of Personal Credit in Credity Acquisitions
Definition
Term
Seperate Property Loan/Community Property Repayment
Definition
The community gains an interest in the property for contributions to principle
Term
Marriage of Moore
Definition
Use the proportion of the contribution to the principle divided by the total reduction in the principle to determine share of appreciaion
Term
Note: for credit acquisitions, MWSP applies
Definition
If a married woman acquires property or credit in her name before 1975 it is presumed to be her separate property. 
Term
Management and Control
Definition

California provides that spouses have equal management and control over community property with absolute power of disposition

 

Term
Limitations to Spouse's Equal Management 
Definition

Bank Accounts: If spouse puts earnings into a bank account with only one name, other spouse would need a court oder to access the account 

Gifts to Third Parties: See card

Community Businesses: See card

Term
Gifts of CP
Definition

- Prohibits gifts for less than fair market value without the written consent of the other spouse. The gift is voidable. - Within the life of the gifting spouse, other spouse may recover full value of gifted property 

-After death of gifting spouse, other spouse may recover 1/2 of property 

Term
Spreckles 
Definition
Wife ratified gifts made by her husband in her will 
Term

Community Businesses 

 

Definition
Gives primary control to a managing spouse who may act alone in all transactions but must give prior written notice to other spouse. Remedy is suing for breach of fiduciary duty.  
Term
Fiduciary Duty 
Definition

Full disclosure, full access to information about assets and debts of the community, highest good faith and fair dealing 

 

Neither spouse shall take unfair advantage of one another

Term
Community Real Property 
Definition
Equal property and management still applies but both spouses must join in executing any instrument by which that real property is sold conveyed or encumbered or for leases greater than 1 year.  
Term
Liability For Marital and Premarital Debts 
Definition

The community estate is liable for debt incurred by either spouse before or during the marriage. 

 

The spouse's SP is liable for debts he or she incurred before or during the marriage but not the other spouse's debts

Term
Exceptions to Liability Rules
Definition
A spouse's SP is liable for certain debts incurred by the other spouse "necessaries of life" while the spouses are living together and "common necessaries of life" while they are living apart. 
Term
Necessaries of Life
Definition
Living costs associated with the couples station in life
Term
Common Necessaries of Life
Definition
Expenses that are required to sustain life 
Term
Protecting Earnings from Other Spouse's Premarital Debts
Definition

1. Must put earnings  in an account in which other spouse has no right of withdrawal 

2. Must not commingle earnings with any other community property  

Term
Child support obligations from prior relationship 
Definition

- Community estate is liable unless the other spouse's earnings are shielded 

- Other spouse's sp is not liable 

 

Term
Debt Provisions Summary
Definition

1. Best understood as protecting creditors 

2. Community Estate is liable for debts incurred by either spouse before or during marriage. 

3. Spouse can shield their income from premarital debts of other spouse by keeping in separate account which debtor spouse has no access to and not commingled with other  community property. 

4. After separation, the spouse is only liable to the other for common necessaries of life 

Term
Putative Spouses 
Definition

Result when there is some defect in the marriage, renders it void or voidable. 

Requires one or both spouses to have a good faith belief that the marriage was valid

The bad faith spouse cannot benefit from putative spouse status 

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