Definitions and Source Issues Flashcards
Separate Property
All property and debts acquired before marriage, after permanent separation, by gift, or by inheritance. And all rents, income, and profits that derive from these sources.
Community Property
All property and debts acquired during marriage are presumed community property unless excepted.
Quasi-CP
Property (wherever situated) acquired by a married couple in another jurisdiction that would have been CP if acquiring spouse was domiciled in California.
Quasi-CP remains SP of acquiring spouse except:
- Death of acquiring spouse
- Dissolution
- Action by Creditors
Note: If non-acquiring spouse dies first, remains SP
Quasi Marital Property
Property acquired during a void or voidable marriage, which would have been CP or QCP if marriage not void or voidable.
Putative Marriage (for QMP)
One (or both) spouse(s) has a good-faith belief in the existence of the marriage
Quasi Marital Property - GR
Upon dissolution of putative marriage, court will treat QMP as CP or QCP. But note: unsettled law whether bad-faith spouse can invoke the doctrine to claim property.
Professional Degree
A professional degree or license remains the SP of the acquiring spouse.
Professional Degree - CP entitled to:
Reimbursement PLUS interest for educational expenses (e.g. tuition, books, but NOT living expenses) IF the education substantially enhances the earning capacity of the acquiring spouse, UNLESS:
- The community has substantially benefited (10 year rule - presumed benefited)
- Education expenses offset by education/training expenses of other spouse; OR
- Education substantially reduces need for support that otherwise would be required
Professional Degree - Loan
Any loan incurred during the marriage for educational expenses is assigned to the educated spouse at dissolution as a SP debt.
Life Insurance
- Last payment controls; so if SP funds used, then policy is SP
- SP and CP get pro rata share if policy accrues
- If CP, spouse would get 1/2 of what goes to beneficiary
Child/spousal support
- Obligations that are not the result of the marriage, regardless of when ordered, are SP
- CP liable during the marriage, but can get reimbursement at dissolution if debtor had SP funds at time payments were made
Disability
Treat it according to what it replaces - if it replaces SP, then it is SP
Debts acquired during marriage
Presumed CP unless intent of lender was to hold SP liable (always raise this issue when either spouse borrows)
Recovery from Third-Party Tortfeasor
CP as long as date of accident was during marriage; but may be awarded entirely to injured spouse at dissolution