Community Property 3

Question 1

At DIVORCE, each Spouse is entitled to ½ CP.

EVERY ASSET is divided EQUALLY, unless:

Answer 1

ECONOMIC Circumstances warrant awarding 1 asset to 1 S ALONE & CASHING-OUT the other S
[loss of the Family Home would uproot minor children /All SHARES of a CHCorp go to CEO Spouse]

Question 2

MISAPPROPRIATION …

Answer 2

of CP by one S triggers an Exception to the 50/50 rule.

Question 3

If Decedent dies TESTATE vs. INtestate:

Answer 3

TESTATE: can only WILL away ALL his SP +½ of CP.
INTESTATE: SS gets ALL of CP + up to 1/3 of decedent’s SP, depending on Decedent’s Surviving RELATIVES.

Question 4

If Liabilities Exceed Assets …:

Answer 4

as an Exception to the 50/50 rule: one S may be BURDENED MORE than the other to pay the DEBT.

Question 5

An Exception to 50/50 rule is: EDUCATIONAL DEBTS:

Answer 5

are SP, and ASSIGNED to the EDUCATED Spouse at Divorce.

Question 6

*TORT LIABILITY +Order +Creditor rights:

Answer 6

1) CP is PERS. Liable.
2) If Tortfeasor S was acting for BENEFIT of the community, Debt is Satisfied 1st from CP then from T’s SP.
ELSE: ATTACH T’s SP before CP.
3) But V. (CREDITOR) canNOT reach other S’s SP.

Question 7

Spouse canNOT SELL /Encumber PERSONAL Pr:

Answer 7

used in the HOME
[Furniture, Clothes, BELONGINGS]
w/o WRITTEN CONSENT.
Any UNILATERAL Act is ALWAYS VOIDABLE by the other Spouse, i.e., NO SOL applies.

Question 8

GR: Each spouse has EQUAL Management & CONTROL RIGHTS to:

Answer 8

Sell, Encumber, and Spend ALL of the CP WITHOUT CONSENT. However, …

Question 9

Transfer of CPrealPr:

Answer 9

both Spouses must join in the SALE (or Lease > 1 year).

Any UNILATERAL transfer to a BFP is VOIDABLE w/in a 1 yr. SOL. CA: No SOL applies if non-BFP.

Question 10

Business exception: A spouse running a CP business …+CA:

Answer 10

1) has PRIMARY Management & Control over it &
2) may Act ALONE.
CA: BUT CanNOT Sell SUBSTANTIALLY ALL Pr used in the biz. so as to IMPAIR the Non-Manging S’s 1/2 CP, w/o prior WRITTEN NOTICE.

Question 11

GR: Marital DEBT:

Answer 11

CP (& for Creditors’ Purpose also QCP) is liable for EITHER Spouse’s Marital AND PRE-Marital (!) DEBT.

Question 12

Creditors canNOT Reach … +CA +CCA:

Answer 12

1) UNcommingled Marital Earnings, SHIELDED in Separate bank account
2) NON-D’or’s SP=NOT pers. liable for D’or S’s (pre-) marital debt.
CA: NECESSARIES UNTIL Entry of jgmt (Duty to SUPPORT).
CCA: REIMBURSE SP if: CP was AVAILABLE.

Question 13

Spousal / Child Support from previous M.:

Answer 13

is treated as pre-marital SP DEBT.

=> CP gets REIMBURSED.

Question 14

Fiduciary Duty:

Answer 14

Spouses OWE each other the highest duty of GF & FD.
1) If one S OBTAINS an ADVANTAGE from a TRANSACTION,
BREACH is PRESUMED &
2) ADVANTAGED S: has BOP to REBUT
[=show there was NO Gross N. /RECKLESSNESS].

Question 15

*UNauthorized Gift:

Answer 15

A spouse can’t make an UNauthorized GIFT of CP to a 3P w/o WRITTEN CONSENT.

1) During Donor’s LIFETIME: S can 100% VOID/Set ASIDE.
2) After Donor’s DEATH: SS can recover her ½ share from: either a) DonEE or b) donor’s ESTATE. Other ½: treat as valid TESTAM. GIFT of Decedent’s 1/2 CP Share.

Question 16

Widow’s ELECTION of Wills:

Answer 16

If REMEDIES CONFLICT or the Testator Attempts to Devise more than his 1/2 CP share by Will, the SS Must ELECT to take either UNDER or the will Or AGAINST the will (=her stat. 1/2 CP share).

Question 17

*US Savings BONDS, even if paid w/ CP …:

[+Military LIFE insurance /Soc. Sec. /Fed Disability BEN]

Answer 17

are SP ABSENT FRAUD, b/c Federal law Preempts CP law.
CA: MILITARY RETIREMENT BENefits: are CP!
=> CP gets PRO-Rata Share.

Question 18

An Exception to 50/50 rule is: EARNING POWER of a S:

Answer 18

is considered ONLY for Spousal & Child SUPPORT Payments.