MANAGEMENT AND CONTROL Flashcards
What are the fiduciary duties each spouse has?
Full Disclosure: Each spouse has a fiduciary duty to the other spouse to fully disclose all material facts about community assets and debts and to provide equal access to all information upon request.
AND
Good faith and fair dealing: Each spouse has a fiduciary duty to use the highest good faith and fair dealing with the other spouse and never to take unfair advantage of the other.
Which spouse can control the CP personal property?
Management and control of the community personal property belongs to either spouse with absolute power of disposition, other than testamentary, as they have with their separate property estate.
Does a spouse need a written consent to make a gift from CP personal property?
YES. A spouse may not make a gift, or dispose of community personal property for less than fair and reasonable value without the written consent of the other spouse.
What are the testamentary limitations each spouse has over CP?
Each spouse can only dispose of one-half of their CP through a testamentary disposition (will or trust), since the other spouse owns the other one-half of the CP, though a spouse may dispose of all of their SP.
Can one spouse take full control over CP Personal property ??
No. Under the Personal property in the family dwelling rule –> A spouse may not sell, convey, or encumber community personal property used in the family dwelling, furnishings, clothing of children or the other spouse without written consent of the other spouse.
How can a Community Business managed and controlled?
A spouse who is in charge of managing and controlling a community business can make all business decisions alone but must provide the other spouse with written notice of a sale or disposition of all or substantially all of the personal property used in the business operations.
