Impact of Title on Characterization

Question 1

What is the married woman’s presumption?

Answer 1

Prior to 1975, when a piece of property was bought with a written title in a married woman’s name only, it is presumed to be her SP. Same is true if the title was in both H and W name, but no reference to jt tenancy or their being H and W. The theory was that prior to 1975, H was given the sole management and control of the community assets and the property taken in the W’s name was presumed to be a gift to her. So if Title says Bob Jones and Carol Jones. Carol gets her 1/2 plus 1/2 CP, so 3/4 woman’s. After 1975, no more presumption, b/c equal management rule adopted. Still assumed, though, that property bought by one spouse and titled in other is gift.

Question 2

What is the Lucas rule?

Answer 2

When H & W buy an asset in joint, written title, even if SP used for part of the purchase price, it becomes CP bc a gift to the community is presumed. No reimbursement. Applies at death and pre-1984. These rules only matter IF THERE IS WRITTEN TITLE INVOLVED.

Question 3

What are the anti Lucas amendments?

Answer 3

Apply to divorce only. 1984-87. Property acquired in joint tents is CP, absent clear agreement or statement in deed to the contrary, but down payments, improvements and principal reduction (DIP) is reimbursable without interest if paid out of SP. After 1987 – Same as 1984 amendments, but extends to all forms of joint title, Includng TIC. Only DIP reimbursable. Interest payments; maintenance; insurance – not reimburseable.