Community Property 24-30 Flashcards
How are stock options deemed if they were awarded during marriage, but become exercisable after marriage?
It depends on how they were earned and intent of employer.
If awarded for past services: CP value is the time employed during marriage divided by the time employed until the date the option becomes exercisable.
If awarded to encourage the employee to stay: CP value is the time from the date the option was granted to the economic community ended divided by the time from the option was granted to the date the option becomes exercisable.
Priority: Medium
Is a Loan taken out during the marriage considered a community or separate debt?
The personal credit of a spouse belongs to the community during marriage. Thus, a loan taken out is community debt (unless the lender’s primary intent for giving the loan was the spouse’s SP used as collateral).
Priority: Medium
What does the Anti-Lucas Statute state?
That upon divorce, any SP used to acquire jointly titled property is entitled to reimbursement.
At death, SP used to acquire jointly titled property is presumed to be a gift (no reimbursement is allowed), UNLESS otherwise agreed.
*Reimbursement includes: down payments, payments for improvements, and principal payments.
Priority: Medium
CP used to improve the other spouse’sSP
vs.
CP used to improve a spouse’s own SP
CP used to improve the other spouse’s SP: Courts are split. In some courts, CP is presumed a gift. Other courts have held that the community is entitled to reimbursement.
CP used to improve a spouse’s own SP: The community is entitled to reimbursement (for either cost of improvement or the increase in value of SP).
Priority: Medium
SP used to improve CP
vs.
SP used to improve other spouse’s SP
SP used to improve CP: the spouse is entitled to reimbursement (for either the cost of the improvement orincrease in value).
SP used to improve other spouse’s SP: the spouse is entitled to reimbursement for the amount of contribution made.
Priority: Medium
When is the community entitled to reimbursement for Professional Degrees acquired during the marriage?
When:
CP funds are used to pay educational expenses including loans; AND
The education enhanced the spouse’s earning capacity.
Priority: Medium
When is reimbursement NOT required to the community for Professional Degrees acquired during a marriage?
Where:
The community has substantially benefited from the education (after 10 years a benefit is presumed);
The other spouse received community funded education; OR
The education lessens the need for spousal support.
Priority: Medium
