Characterizing Property - Source

Question 1

Division of Property on Divorce

Answer 1

CEEPSDEDI - (CP Equally Earning Power Spousal Debt Each Death Inures)

1. CP divided equally on per item basis unless special rule (PI, etc.);
2. Earning power not considered except Spousal Support or Debt;
3. Each spouse entitled to own SP
4. Death - CP inures to survivor

Question 2

Personal Injury Awards

Answer 2

CADIDJIC - (Cause Action During Injured Divorce Justice Interests Commingled)

1. CP if cause of action arose during marriage;
2. Awarded to injured spouse on divorce; unless
3. Commingled/spent with CP; or
4. Interests of justice require.

Question 3

Personal Injury Liability

Answer 3

SACISC-MR -(SP Acting Community Insurance SP CP Medical Reimbursement)

1. SP of tortfeasor; unless
2. Acting for benefit of community;
3. Order of satisfaction is:
4. insurance of injured spouse > SP of tortfeasor spouse > CP (last resort);
5. Community reimbursed for CP funds paid on medical expenses pre-settlement.

Question 4

Educational Degree or Professional License

Answer 4

1. FC 2641 entitles community to reimbursement with interest for;
2. CP contributions to one spouse’s education; that
3. Substantially enhances earning capacity.
4. No reimbursement if
5. other spouse received CP-funded education; or
6. Community already substantially benefited (rebuttable presumption if 10 years have passed since degree).
7. If degree substantially reduced need for support, suggests community already substantially benefited.

CRIOSE-SE-NOR-CABS-10 (Community Reimbursement One Spouse’s Education Substantially Enhances No Other Received Community Already Benefitted Substantially 10-year)

Question 5

Goodwill

Answer 5

1. Catchall for intangible value in business;
2. Expectation of continued public patronage;
3. Market value - willing buyer price;
4. Capitalization - net income less reasonable salary x capitalization rate. Highest valuation method usually.
5. Any reasonable method okay.

CIV-EPP-MCA (Catchall Intangible Value Expectation Public Patronage Market Capitalization Any)