High - CP

Question 1

End of economic community

Answer 1

End when

1. Death of either spouse
2. Permanent physical separation

Question 2

Rights of Spouses - CP

Answer 2

Manage and Control CP 
Sell/encumber/dispose without consent 
EXCEPT: 
1. personal property for less than fair and reasonable value 
2. fundamental business changes 
3. transfer of real property 
4. inter vivos gift of CP

Question 3

Fiduciary Duty -CP

Answer 3

Highest good faith and fair dealing
can’t take unfair advantage
Breach = (1) intentional, (2) grossly negligent, (3) reckless dissipation or destruction of property.
Financial advantage at the expense of other spouse = reimbursement

Question 4

General Characteristics -CP

Answer 4

Jointly title property = CP a divorce (Anti-Lucas)

SP used to purchase = entitled to reimbursement / Death = gift (no reimbursement)

Question 5

Special Characteristics - Personal Injury and Settlements -CP

Answer 5

Against 3P > during marriage = CP / before or after = SP

Divorce = assigned to unjuried spouse UNLESS (1) commingled funds (2) economic hardship of other spouse

Question 6

Specific Characteristics - Separate Property Business -CP

Answer 6

SP business is enhanced by community labor during marriage
Pereira: business growth from spouse’s labor & abilities. Spouse receives original principal value PLUS annual rate of return at 10%
Remaining value = CP
Van Camp: business growth due to character and nature of business. Community receives reasonable salary in return of community labor REDUCED by any community expenses and remaining value (SP)

Question 7

Transmutation

Answer 7

agreement btw spouses during marriage to change the character of an asset (no consideration is necessary)
Valid if: (1) writing (2) signed and consented to by adversely affected spouse (3) expressly declares change in ownership
Gift of insubstantial value exception (CP to SP gift) = (1) tangible property of personal nature (2) used solely by recipient spouse (3) insubstantial in value

Question 8

Rights of Creditors -CP

Answer 8

may reach CP to satisfy debts incurred before or during marriage
non-debtor spouse’s earnings are protected if (1) debt occurred before marriage and (2) earnings were held in separate account
EXCEPTIONS:
(1) necessities during marriage - when separate only obligated for emergency situations (2) tort liability when acting to benefit community
Creditors cannot reach CP awarded to spouse after divorce UNLESS (1) spouse incurred debt (2) assigned the debt by court