Management and control of CP

Question 1

Personal property

Answer 1

Equal management and control over major personal property transactions except:
1. Bank accounts—if in one spouse’s name, access limited to that spouse
2. Gifts to third parties
• Must have written consent
• Non-consenting spouse can ratify gift or revoke gift and sue to recover property
• After donor spouse’s death, non-consenting spouse can ratify gift or void ½ value of it
3. Household goods—spouse may not sell/convey/encumber the family dwelling, household furniture/furnishings, or the clothing of other spouse or minor children without written consent of the other spouse
4. Community business
• Managing spouse has primary management and control
• Managing spouse must give prior written notice to other spouse for major actions (non-managing spouse can seek remedy if managing spouse detrimentally impacted CP interest)

Question 2

Real property

Answer 2

1. Equal management and control—both spouses must execute an instrument leasing for longer than one year, or selling, conveying, or otherwise encumbering community real property; “equal” management means that both spouses must participate in decisions regarding major real property transactions
2. Title held by both spouses—both spouses must participate in the transaction if title shows they are married
3. Title held by one spouse—a transaction is presumed valid if the purchaser, in good faith, did not know the seller was married

Question 3

Restraints during divorce proceedings

Answer 3

TRO will be issued in summons restraining parties from selling or encumbering properties
• Will not restrain if the prohibitive actions take place (i) in the usual course of business and (ii) for the necessities of life

Question 4

Fiduciary duty

Answer 4

1. Highest duty of good faith in management/control of CP (duty to disclose, to account, and to obtain consent)
2. Breach requires deliberate misappropriation, gross negligence, or reckless conduct