Community Property Flashcards
What is required for a spouse to encumber community property?
Written consent from the other spouse is required.
What can breach of spousal fiduciary duties lead to?
Breaches can lead to voided transactions, compensation, unequal CP division, or other remedies.
What is the duty of equal management and control over community property?
Each spouse has equal management and control over community property (CP).
What happens if a spouse sells or encumbers community property without consent?
Violations may result in remedies such as voided transactions, compensation, or unequal division of CP.
What duty do spouses owe each other?
Spouses owe each other the highest duty of good faith and loyalty. Each has equal control over CP and cannot encumber it without the other’s written consent
What is property held in joint tenancy between spouses considered upon divorce?
It is considered the community property of the marital estate (MEC).
What is presumed when both spouses sign a loan?
It is presumed to be community property (CP) debt.
What type of debt is a loan if a lender relies only on one spouse’s separate property?
The loan is that spouse’s separate property (SP) debt.
What type of debt is a loan if a lender relies on both spouses’ assets?
The loan is community property (CP) debt.
Community Title
When both spouses sign a loan, it is presumed CP debt.
Community Debt – Source of Assets
If a lender relies on both spouses’ assets, the loan is CP debt; if only one spouse’s SP, the loan is that spouse’s SP debt.
Change in Character – Transmutation
A spouse can transmute separate property into community property through a signed writing showing intent.
What is a Marital Economic Community?
In California, the MEC lasts from marriage until permanent separation. Courts determine permanent separation by assessing whether one spouse clearly intended to end the marriage, considering actions like leaving the home, managing finances separately, or declaring the marriage over.
What is CA’s Community Property Presumption?
California is a community property (CP) state.
Property acquired during the marriage is CP, while property obtained before marriage, after separation, or through gift, bequest, or inheritance is separate property (SP).
Debts, like property acquired during marriage, are treated as CP debts.
