Community Property 31-38 Flashcards
When can Community Property be used to make child support payments from a prior marriage?
When SP is NOT available.
When CP is used to make payments and SP WAS available, then the community is entitled to a reimbursement.
Priority: Medium
When is a spouse entitled to reimbursement when they expend their SP for the other spouse’s medical expenses?
When:
Community Property was available; OR
If the debtor spouse had available Separate Property.
Priority: Medium
Pro-Rata Rule
How are payments made with CP treated when paying a spouse’s SP loan?
The community is entitled to a pro-rata ownership share of the property for amounts that reduced the principal debt on the asset.
Payments for mortgage interest, taxes, and insurance DO NOT count as reducing the principal debt.
Upon divorce: The community is entitled to reimbursement for its pro-rata share of SP.
Priority: Low
What is a Transmutation, and when is it valid?
An agreement between spouses during marriage to change the character of an asset.
It’s valid only if (1985 and later):
It’s in writing;
Signed and consented to by spouse whose interest is adversely affected; AND
It expressly declares a change in ownership.
Priority: HIGH
Transmutations
What is the Gift of Insubstantial Valueexception?
CP will be transmuted into SP by a gift from one spouse to the other, if the gift is:
Tangible property of a personal nature;
Used solely by the recipient spouse; AND
Insubstantial in value (considering the lifestyles of the two parties).
Priority: HIGH
When is an oral Prenuptial Agreement valid?
When:
It’s fully performed; OR
If the party detrimentally relied on the agreement.
Priority: Medium
When is a Prenuptial Agreement valid?
When in writing and signed by both parties.
Priority: Medium
When will a Prenuptial Agreement be deemed Unenforceable?
If it is:
Involuntary;
Unconscionable; OR
Encourages divorce.
Priority: Medium
