California Community Property Flashcards
Community property (California)
Assets and debts acquired during marriage that are owned equally by both spouses.
Example: A house purchased during marriage with joint funds is considered community property.
Separate property (California)
Property owned by one spouse before marriage or acquired by gift, bequest, or inheritance.
Additional information: Separate property is not subject to division upon divorce.
Quasi-community property (California)
Property acquired while living in a non-community property state that would have been community property if acquired in California.
Example sentence: Property acquired in New York but would be community property in California.
Commingled property (California)
Property that contains both separate and community property funds.
Example: Bank account with funds from both spouse’s salaries and inheritance.
Tracing (California)
Method used to identify the source of funds to determine property characterization.
Explanation: Tracing is used to distinguish between separate and community property.
Community property presumption (California)
Assumption that property acquired during marriage is community property unless proven otherwise.
Legal principle: The burden of proof is on the party claiming separate property.
Management and control (California)
Both spouses have equal rights to manage and control community property.
Explanation: Each spouse has the authority to make decisions regarding community assets.
Fiduciary duty (California)
Spouses must act in the highest good faith and fair dealing with respect to community property.
Legal obligation: Spouses must prioritize the interests of the marital partnership.
Transmutation (California)
Process of changing the characterization of property from separate to community or vice versa.
Requirement: Transmutations must be in writing to be valid.
Premarital agreement (California)
Contract entered into before marriage outlining property rights and obligations.
Enforceability: Premarital agreements must be fair and reasonable to be upheld in court.
Community property reimbursement (California)
Right to repayment for separate property contributions to community property.
Example: Reimbursement for using separate funds to pay off a mortgage on a community property home.
Division of property at divorce (California)
Equal division of community property between spouses upon divorce.
Legal requirement: Community property is typically split 50/50 in a divorce.
Post-separation earnings (California)
Income earned by a spouse after separation, considered separate property.
Treatment: Earnings after separation are not subject to community property laws.
Date of separation (California)
The date when a complete and final break in the marital relationship occurs.
Legal significance: Date of separation impacts property division and characterization.
Community property business (California)
Business operated during marriage considered community property.
Ownership: Both spouses have an interest in the business and its assets.
Separate property business (California)
Business owned by one spouse before marriage or acquired with separate property funds.
Example: A business started by one spouse before the marriage.
Goodwill (California)
Intangible asset representing the reputation of a business, considered community property if earned during marriage.
Valuation: Goodwill may be subject to division in a divorce.
Educational degrees (California)
Degrees and licenses are separate property, but the community may be reimbursed for contributions to education.
Reimbursement claim: Spouse may seek reimbursement for educational expenses paid with community funds.
Stock options (California)
Characterized based on when they were awarded and vested, either as community or separate property.
Treatment: Stock options may be subject to division in divorce depending on vesting and award date.
Retirement benefits (California)
Pension and retirement benefits earned during marriage are community property.
Division: Retirement benefits accumulated during marriage are typically split equally.
Disability benefits (California)
Benefits characterized based on whether they replace earnings during marriage or after separation.
Treatment: Disability benefits received during marriage are usually considered community property.
Life insurance (California)
Proceeds from a policy paid for with community funds are community property.
Ownership: Life insurance benefits purchased with joint funds are considered community property.
Personal injury awards (California)
Characterized based on when the cause of action arose, either as community or separate property.
Example: Damages for personal injury occurring during marriage may be community property.
Debt liability (California)
Community estate is liable for debts incurred by either spouse during marriage.
Responsibility: Both spouses may be responsible for debts acquired during the marriage.
Marital agreements (California)
Contracts made during marriage altering property rights, must be in writing and meet certain requirements.
Validity: Marital agreements must comply with legal standards to be enforceable.
Spousal consent (California)
Requirement for both spouses to agree on significant transactions involving community property.
Protection: Spousal consent ensures both parties are aware of and approve major financial decisions.
Community property inheritance (California)
Rules for distributing property upon death of a spouse.
Survivorship: Community property may pass directly to the surviving spouse upon death.
Community property tax implications (California)
Tax effects on transfers and division of community property.
Consideration: Tax consequences must be taken into account when dividing community assets.
Separate property improvements (California)
Characterization of enhancements to separate property using community funds.
Example: Renovations to a separate property home paid for with joint funds.
Credit acquisitions (California)
Characterization based on the intent of the lender, whether relying on community or separate property.
Clarification: Creditors’ intentions determine how debts are classified in a divorce.
Characterization of property (California)
Process of determining if property is community, separate, or mixed.
Legal analysis: Property characterization is crucial in dividing assets during divorce.
Time of acquisition (California)
Determines property characterization based on when the property was acquired.
Significance: Timing of acquisition can impact property rights and division.
Title presumption (California)
Legal assumption regarding property ownership based on how title is held.
Presumption: Title presumption may influence property division in certain cases.
Presumption of undue influence (California)
Arises when one spouse gains an advantage in a property transaction.
Legal protection: Presumption of undue influence safeguards against unfair property transactions.
Property management (California)
Rules governing how spouses manage and control community property.
Responsibility: Spouses must adhere to legal guidelines when managing community assets.
Community property dissolution (California)
Division of community property upon death or divorce.
Outcome: Community property dissolution involves distributing assets according to legal requirements.
Putative spouse (California)
Person who believes in good faith they are in a valid marriage, entitled to community property rights.
Claim: A putative spouse may seek property rights even if the marriage is later found to be invalid.
Intestate succession (California)
Distribution of property when a spouse dies without a will.
Default distribution: Without a will, California law determines how property is distributed.
Surviving spouse rights (California)
Entitlements of the surviving spouse to community and separate property.
Protection: Surviving spouse has legal rights to certain assets upon the other spouse’s death.
Quasi-marital property (California)
Property treated similarly to community property, acquired during a putative marriage.
Legal status: Quasi-marital property may be subject to division as if it were community property.
Spousal property petition (California)
Legal request to determine ownership rights in community property after a spouse’s death.
Procedure: Spousal property petition is used to clarify property rights in case of dispute.
Right of survivorship (California)
Community property that automatically passes to the surviving spouse.
Beneficiary: Survivorship rights ensure seamless transfer of assets to the surviving spouse.
Joint tenancy (California)
Property held jointly by spouses, with survivorship rights, but treated differently than community property.
Ownership: Joint tenancy provides survivorship rights but may not be subject to community property laws.
Transmutation by agreement (California)
Spouses’ agreement to change the character of property, requiring written documentation.
Formality: Transmutations by agreement must be properly documented to be legally binding.
Fiduciary breach remedies (California)
Legal actions available when a spouse breaches fiduciary duties in managing community property.
Protection: Fiduciary breach remedies aim to hold accountable spouses who violate their duties.
Separate debt liability (California)
Rules governing responsibility for debts incurred before or during marriage.
Liability: California law distinguishes between separate and community debt obligations.
Marvin action (California)
Claim by cohabitants to enforce property and support agreements.
Legal recourse: Marvin actions allow unmarried partners to seek property rights similar to married couples.
Date of separation significance (California)
Importance in ending the community property period and affecting property characterization.
Impact: Date of separation can influence property division and financial obligations.
Post-divorce creditor rights (California)
Creditors’ ability to reach property awarded to a spouse in divorce.
Enforcement: Creditors may pursue assets awarded to a spouse in a divorce settlement to satisfy debts.
Property partition at death (California)
Process of dividing community property upon the death of a spouse.
Distribution: Property partition at death involves determining how community assets are distributed.
Domestic partnership (California)
Legal relationship granting community property rights similar to marriage.
Recognition: Domestic partners in California have similar property rights as married couples.
Void and voidable marriages (California)
Impact on property rights and division when a marriage is invalid.
Legal status: Void and voidable marriages may affect property ownership and division.
Property insurance (California)
Characterization of insurance proceeds.
Treatment: Insurance proceeds may be classified as separate or community property based on the policy’s ownership.
Separation significance (California)
Importance in ending the community property period and affecting property characterization.
Example sentence: Understanding the separation significance in California is crucial for determining the division of property in a divorce.
Post-divorce creditor rights (California)
Creditors’ ability to reach property awarded to a spouse in divorce.
Example sentence: Post-divorce creditor rights in California can impact the division of assets between former spouses.
Property partition at death (California)
Process of dividing community property upon the death of a spouse.
Example sentence: Property partition at death in California involves distributing assets according to state laws.
Domestic partnership (California)
Legal relationship granting community property rights similar to marriage.
Example sentence: Domestic partnership in California provides couples with similar property rights as married couples.
Void and voidable marriages (California)
Impact on property rights and division when a marriage is invalid.
Example sentence: Void and voidable marriages in California can complicate property division during a divorce.
Property insurance (California)
Characterization of insurance proceeds based on the source of premium payments.
Example sentence: Property insurance in California may impact property division based on how premiums were paid.
Management of community business (California)
Rules for the spouse managing a community-owned business.
Example sentence: Understanding the management of a community business in California is essential for smooth operations.
Retirement benefit valuation (California)
Determination of the value of retirement benefits for property division.
Example sentence: Retirement benefit valuation in California is crucial for accurately dividing assets during a divorce.
Community property with survivorship (California)
New title form ensuring property passes to the surviving spouse without probate.
Example sentence: Community property with survivorship in California simplifies the transfer of assets to a surviving spouse.
Gift exclusion (California)
Exception allowing certain gifts between spouses without formal transmutation.
Example sentence: Gift exclusion in California permits spouses to exchange gifts without affecting property rights.
Business goodwill valuation (California)
Methods for valuing business goodwill as community property.
Example sentence: Business goodwill valuation in California is essential for determining the worth of shared business assets.
Separate property mutation (California)
Change in the form of property without changing its characterization.
Example sentence: Separate property mutation in California can occur when property undergoes a change in ownership.
Educational contribution reimbursement (California)
Community right to repayment for contributions enhancing a spouse’s earning capacity.
Example sentence: Educational contribution reimbursement in California allows spouses to seek repayment for career-enhancing investments.
Living separate and apart (California)
Old standard for ending the community property period, now replaced by the date of separation.
Example sentence: Living separate and apart was an old standard in California for determining the end of the community property period.
