Med - CP Flashcards
Married Woman’s Special Presumptions
gives the wife presumption of SP if: (1) title is taken in her name alone (2) property acquired before 1975
Putative Spouse
good faith reasonable belief that they are married. Entitled to quasi-marital property - treated like CP at death/divorce
End when finds out not lawfully married but retains property believed when good faith
Unmarried Cohabitants
Marvin case: courts may enforce express agreements btw cohabiting couples that are not married - no illicit sex acts. Separate accounts deemed SP
Goodwill of Business
intangible value of business’ reputation beyond personal skill or value of assets.
Goodwill generated by community labor = CP
Valued by: (1) Market value method - price of business at sale OR (2) Capitalization of Excess Earnings Method - present value of future stream of income that goodwill developed during marriage
Stock Option -CP
form of employee compensation and entirely CP only if they are exercisable during marriage
Awarded during marriage but become exercisable after marriage = depends on how they were earned & intent of employer
Awarded to reward past services = CP (time employed during marriage divided by date of exercisable)
Awarded primarily to encourage employee to remain w/company = CP (date of option granted to date of end of economic community ended divided by time option was granted to date option becomes exercisable)
Credit and Acquisitions of Property Using Credit -CP
Loan taken out during marriage = community debt UNLESS lender’s primary intent for giving loan was the spouse’s SP used as collateral
Property purchased w/credit = presumptively CP unless primary intent for giving loan was spouse’s SP as collateral
Reimbursement for Property Acquisitions
Acquisitions: Anti-Lucas Statute = any SP used to acquired jointly titled property is entitled to reimbursement (FMV at time of purchase)
Reimbursement: (1) down payments (2) payments for improvements (3) principal payments
Reimbursement for Property Improvements
CP used to improve other spouse’s SP = presumed gift
CP is used to improve spouse’s own SP = community entitled to reimbursement for cost of improvement or increase in value of SP
SP used to improve CP = spouse is entitled to reimbursement for either cost of improvement or increase in value
SP used to improve other spouse’s SP = spouse entitled to reimbursement for amount of contribution made
Professional Degrees and Education Expenses
Acquired during marriage = SP of acquiring spouse. Community entitled to reimbursement when (1) CP funds are used to pay educational expenses and (2) education enhanced spouse’s earning capacity
Reimbursement not required: (1) community substantially benefited from education (10 year presumption) (2) other spouse received community funded education (3) education lessens need for spousal support
Reimbursement for Child Support and Alimony Payments
CP should not be used to make child support payments from prior marriage UNLESS SP is not available. CP is used to make payments & SP is available = community is entitled to reimbursement upon divorce
Reimbursement for Medical Expenses
Spouse entitled to reimbursement when use SP for medical expenses of other spouse if: (1) CP was available OR (2) debtor spouse had available SP
Prenuptial Agreements
allows parties to contract out of CP laws and are valid if (1) in writing and (2) signed by both parties.
Oral valid if: (1) fully performed or (2) party detrimentally relied on agreement.
Unenforceable if: (1) involuntary (2) unconscionable or (3) encourages divorce
Unconscionable = terms are unfair, spouse did not know the extent of property
Involuntary = deemed involuntary unless courts find ALL (1) represented by independent legal counsel (2) not less than 7 days to review agreement (3) fully informed and proficient in language used (4) not executed under duress, fraud, undue influence, lack of capacity
Distribution of Community Assets and Debts Upon Divorce
1/2 CP UNLESS interest of justice requires differently.
Exceptions: (1) misappropriation (2) separate debt -before/after or not in interest of community (3) educational debts (4) tort liabilities (5) family home for custody of children (6) closely held corp
