Essay things I did not know torts Flashcards
What is the standard CP into?
Each answer should define community property and separate property: i) all property acquired during the course of a marriage is presumed to be CP, ii) all property acquired before marriage or after separation is presumed to be SP, and iii) property acquired by gift, devise, or bequest is presumed to be SP.
To determine the character of an asset a court will trace back to the source of funds used to acquire it.
i) at divorce, the community assets are equally divided in kind unless some special rule requires deviation requirement or the spouses agree otherwise, ii) a spouse’s SP remains her SP at divorce.
When the spouses in joint and equal title, what do you start off by saying?
If written title to property is taken in a form that is inconsistent with the character of funds used to purchase the property, an intent to change the character of property to the form evidence by the written title is inferred.
Apply
“If there is no writing to the contrary, at divorce any SP contributions to the acquisition of the property are reimbursed to the SP contributor.
So, if a spouse invests recklessly and breaches its fiduciary duty, what is the other entitled to?
Other spouse may claim that he is entitled to reimbursement for his half of the CP funds that were used to purchase the stock
What do you say for debts in CP?
a) non debtor spouse SP is not touched
b) if debt incurred for community: CP then SP
if not, SP then CP.
What interest do spouses hold when they buy property as joint tenants with right of survivorship?
Each spouse has one hald SP interest in proeprty held in joint tenancy.
A credit of a spouse may attach the debtor
s one hlaf interest.
What do you say when you wanna say that profits of SP remain Sp?
i) rents and profits from separately owner capital, generated without applying community labour are SP, and can be traced to the separate capital, ii) the fruit of SP will remain SP, unless there was a transmutation
In CP, what do you say in relation to personal injury recoveries?
i) Personal injury recovery against a third party tortgeasor is characterized according to when the cause of action arose,
ii) if the cause of action arose during marriage, any recovery or settlement is CP, and at divorce, community estate personal injury damages are awarded entirely to the injured spouse (unless the interests of justice require otherwise)
iii) if the cause of action arose after separation it is the injured spouse’s SP.
Whether or not the recovery is deemed SP or CP, the injured spouse must reimburse the community or the other spouse’s separate estate for any expenses paid on account of the injury. (ex. toher spouse gets half of what CP had to pay for medical expenses)
Undue influence in CP.
: The confidential relationship of spouses imposes of a duty of the highest good faith and fair dealing on each spouse. A rebuttable presumption of undue influence arises when one spouse gains an advantage over the other in a property transaction.
The spouse who obtained the advantage bears the burden of rebutting the presumption.
Thus if a disadvantaged party contests a transmutation or other interspousal transaction, the advantaged party bears the burden of proving that the disadvantaged party freely and voluntarily consummated the transaction, with full knowledge of all the facts and complete understanding of the effect of the transaction.
If we have H and W which buy a house in a non-community state, paying downpayment with Cp and the rest with H’s income? Noting that house is in H’s name
Treated as quasi CP since it would be CP if parties were domiciled in CA at time of buying property.
Presumption is that property during marriage is CP. Downpayment paid with CP + installments also with CP (Hs earnings).
House’ s in H name does not mean anything. Unless transmutation or evidnece this was meant to be a gift this is CP.
When does Periera and Van Camp apply?
When business was initally SP. DO NOT APPLY them when business was started DURING marriage.
What do you say for cohabitation in CP?
Even though cohabitation may be marriage like, California does not apply its CP law to persons who never evidenced any intention to enter into lawful marriage. Instead, California applies general contract principles. Even if a couple lives together, eventually marries and later divorced, only property acquired during marriage is distributed according to CP rules.
Property acquired during cohabitation is treated according to Marvin v. Marvin contract rules. According to Marvin, the courts should enforce express contracts between nonmarital partners except to the extent that such contracts are explicitly founded on consideration of sexual services. If there is no express contract a party may prove a contract implied by the behavior of the parties or an agreement of partnership or joint venture.
So, if we have a spouse getting a settlement for wage replacement that they were suppose to get during marriage but that they did not get because of discrimination, what happens?
Labor performed by a married person is presumed to be community labor, and a spouse’s salary earned during marriage is presumed to be CP. Salary following divorce is deemed SP.
W will argue that the settlement is supposed to a wage replacement for the three years following their divorce. Therefore it is to be treated as SP
Conversely H is to treat the settlement as wage replacement for the income she was suppose in the years they were married. This argument is likely to succeed.
Court have held that funds intended to replace wages that would have been earned during marriage are CP.
What do you say for transmutations?
To be valid, a transmutation must be made in a written express declaration that is consented to or accepted by the spouse whose interest is adversely affected. The writing must expressly declare that a change in the ownership of property is being made
the writing requirement does not extend to gifts between the spouses of items of a personal nature (clothing, jewelry) that are used principally by the spouse to whom the gift is made and that are NOT substantial in value, taking into account the financial circumstances of the marriage
If we have a premarital agreement that states that “wages” are to be SP, does that include profits from a business?
Go through both. Say if agreement intended to include profits this happens, otherwise this happens.
Van Camp and Periera… what’s up with them?
Pereira accounting begins with the separate capital and imputes a fair rate of return, say 10% per year, the current legal interest rate. The total SP interest is the principal plus the fair rate of return (here 10) times the number of years the SP business was in operation and managed by the spouse during the marriage. The remainder is CP In Pereira accounting, family expenses paid by business earnings are not subtracted because Pereira accounting starts by calculating the value of the SP and the residue (already reduced by money withdrawn to pay family expenses) is CP
Van Camp: in this form of accounting, the managing spouse’s services are valued at the going market salary for such services. Then family expenses that were paid from the business earnings are subtracted from the value of the manager’s services. The remainder, if any, represents the CP portion of the business. The rest of the business is the SP of the managing spouse.
o In contracts, Van Camp accounting starts by calculating the value of community labor that still remains in the business, and the residue is SP. Thus, in Van Camp accounting, family expenses are properly taken into account insofar as they were in fact paid from the business income
CP Essay 3 has an example
Payments of the necessities of life, how does that work?
However, even after spouses have separate unless they made a separation agreement each spouse remains personally liable for debts incurred by the other spouse for the “common necessaries of life”.
Who will pay depends on how the court assigns the debt. If the court assign the debt solely to W neither H’s SP nor his share of the CP will be liable for the debt because a spouse’s property is not liable for a debt incurred during marriage by his spouse and assigned to his spouse by the divorce court.
What happens when we have putative spouses?
A California putative spouse is not lawfully married but has a subjective good faith belief that she is lawfully married. The putative spouse has almost the same property rights as a lawful spouse.
All property that would be CP or QCP if her marriage were lawful is labeled quasi marital property QMP.
She has the same rights in QMP that she would have in CP or QCP. However, when on partner is a good faith putative spouse but the other knows o the defect causing the marriage to be void or voidable, it is not clear whether the partner lacking good faith may make any claim to the QMP accumulated by the good faith spouse.
The CA Supreme Court has left this question open but has suggested that it might treat the spouses equally despite one partner’s lack of good faith.
Alternative: doctrine of estoppel
CA courts have liberally applied the doctrine of estoppel to deny a lawful marriage when one spouse has assured the other that they are lawfully married or has known the marriage was not lawful and has continued to enjoy the benefits of marriage. If Hank is estopped to deny the marriage, Wanda is his lawful spouse rather than merely a putative spouse.
Whether she is a lawful spouse or a putative spouse should not affect her rights, although it would ensure that the marriage is treated as a lawful marriage, with the result htat Hank is entitled to an equal distribution of QCP and CP at divorce.
(*) child support by another marriage. Who pays? Is there any right to reimbursement?
A spouse’s child support obligation from a prior relationship is treated as debt incurred before marriage. All of the CP the QMP, and the debtor’s SP are liable for a debt the debtor incurred before marriage.
There is an exception to the rule that all of the CP (QMP) is liable for a debt the debtor incurred before marriage. The CP (or QMP) earnings of the non-debtor spouse are not liable for the debtor’s premarital obligations as long as those earnings are held in a deposit account to which the debtor spouse has no right of withdrawal and no comingling has taken place.
Reimbursement for education. What happens?
At divorce, unless the parties sign an agreement to the contrary, there is an equitable right of reimbursement with interest to the community when community funds are: a) used either to pay for education or training or are used to repay a loan incurred for education or training, and b) the education or training substantially enhances the earnings capacity of the educated party.
Reimbursement may be reduced or modified by any of the following circumstances: the education or training is offset by community- funded education received by the other spouse, the education or training enables its recipient to engage in gainful employment that substantially reduces the need the recipient would otherwise have for spousal support , ot the community has already substantially benefited from the education or training.
There is a rebuttable presumption affecting the burden of proof that if fewer than 10 years have elapsed between the contributions and the initiation of the divorce, the community has not substantially benefitted. If more than 10 years have passed, a presumption arises that the community has substantially benefitted
If you were employed before the you go to law school did you decrease the need for spousal support by increasing your chances for gainful employment?
Generally no. We are looking at a pretty big gap. Like no job to top paying job.
Does CP have an interest in a degree?
A degree is not an asset that can be valued. Therefore the community is not entitled to reimbursement for the cost of acquiring the education.
Goodwill of a business, what happens?
Goodwill is essentially the difference between the total value of a business or professional practice and the value of tis assembled physical assets. Goodwill is an intangible value that develops during the life of a business and includes, among other things, the reputation and habitual clientele of a business or practice. To the extent that goodwill is earned during marriage, California treats it as community property even when some professional goodwill cannot, by law, be sold or transferred and even though much professional goodwill inheres in the particular practitioner and would not survive a sale. Thus the community has an interest in the goodwill to the extent that it was earned during the marriage.
Market sales valuation
Market sales valuation is the price the goodwill would command in a sale of the business or progression.
Capitalization of past excess earnings
“capitalization of past excess earnings” calculate goodwill by looking at the value of future earnings that the goodwill generated during the marriage.
HOWEVER, ALTHOUGH A COURT MAY CONSIDER THE TERMS OF A PARTNERSHIP AGREEMENT, THE TERMS ARE NOT CONCLUSIVE
Spousal immunity in CA
i) Under CEC the spouse of a party yo any kind of proceeding may not be called as a witness by the adverse party and may not be compelled to testify against his spouse in that proceeding
ii) the privilege belogns to the witness spouse only
iii) the privilege can be claimed only during the marriage.
Remember - Although D can object to W’s testimony regarding any confidential communication between them that too place during the marriage, he cannot prevent her from being called to the stand to testify as to other matters i.e. her observation
If you are witness, you agree to testify against husband/wife, then before testifying anything but after break you decide you do not want to anymore, then do you now have to testify?
YUP you wavied it by being willing to testify when she was called as a witness.
However if prosecution later asks you question and you invoke the privilege, does it work? YUP you cannot be compelled. (so you could be called on the stand but coudl not be compelled to testify).
[inspired from essay 6 evidnece]
When is a witness being unresponsive?
A witness’s answer may be striken as non-responsive if it goes beyond the scope of the specific question that has been asked.