Managing the Community Estate

Question 1

*Sole Management Community Property

Answer 1

During marriage, each spouse has the sole power to manage, control, and dispose of his or her sole management CP

Question 2

*Joint Management CP

Answer 2

If one spouse’s sole management CP is mixed or combined with the other spouse’s sole management CP, the mixed or combined CP is subject to the joint management, control and disposition of the spouses, unless the spouses provide otherwise by written power of attorney or otherwise

Property is joint management CP unless its sole management character is established

Question 3

*Presumption of sole management if only one spouse on title

Answer 3

Meant to protect third parties

A third party dealing with a spouse is entitled to rely on that spouse’s authority to deal with the property - must not have notice of lack of authority

Question 4

Joinder of spouse not required

Answer 4

A spouse may sue or be sued without the joinder of the other spouse. When claims or liabilities are joint and several, the spouses may be joined under the rules relating to joinder of parties

Question 5

Court order managerial powers

Answer 5

A court may order managerial powers over CP that otherwise would be under the sole or joint management of the other spouse if: 1) a spouse disappears, 2) spouse abandons the other, 3) spouses are permanently separated, or 4) a spouse is classified as missing in action or is a prisoner of war

Question 6

Incapacitated Spouse

Answer 6

Estate code makes an automatic grant of managerial powers to the other spouse. Guardianship is required for the incapacitated spouse’s SP

Question 7

Each spouse is liable for other spouse’s contracts for necessaries

Answer 7

both spouses are personally liable for other spouse’s contracts for necessities

include: food, rent and medicine

All forms of property can be reached including the other spouse’s SP and the spouse will not be entitled to reimbursement

Question 8

Contracts

Answer 8

Rule is that the contracting party can reach all property over which the spouse had management powers

the creditor cannot reach the other spouse’s sole management community or separate property

Question 9

Divorce does not affect the rights or preexisting creditors

Answer 9

Creditors can reach assets that could have been reached during the marriage

Question 10

Torts committed before marriage

Answer 10

The judgment creditors can reach the D spouse’s SP, sole management CP, and joint management CP

The other spouse’s SP and sole management CP cannot be reached

Question 11

Torts committed during marriage

Answer 11

All CP can be reached

Question 12

Funeral Expenses

Answer 12

Are charged against the deceased spouse’s share of CP and not against the CP share of the surviving spouse