Misc.

Question 1

Installment K Paid Down w/ CP

Answer 1

Proration Rule

[CP debt reduction / purchase price] = CP

Question 2

Life Insurance

Answer 2

Whole Life: proration [CP premiums / total premiums]

Term: 100% by last premium

Question 3

Property Improvements

Answer 3

1. CP for Own SP: reimburse community for greater of (i) improvements or (ii) FMV increase.
2. CP for Other’s SP: split - (a) presumed gift so no reimbursement w/out agreement; and (b) reject presumption and allow reimbursement.
3. Own SP for CP: gov’d by Lucas (death) or Anti-Lucas (divorce)

Question 4

Co-Mingled Bank Accounts

Answer 4

To call SP, must show each asset purchased with SP

1. no recapitulation
2. family expense presumption: presume family expenses from CP
3. Exhaustion Method: show CP exhausted at time of purchase
4. Direct Tracing: sufficient SP at time of purchase + intent

Question 5

Business Inc. During Marriage

Answer 5

1. Pereira: growth from skill, time and effort / modest salary: SP = value at marriage + 10% interest (rest CP)
2. Van Camp: growth from capital investment / high salary: CP = fair salary over marriage - family expenses from CP (rest SP)

Question 6

Retirement/Pension Benefits

Answer 6

PRORATION RULE
[service years married / total years service] = CP
–not eligible at time: (i) if/when received or (ii) cash her out now

–eligible: benefit matured so can’t defeat spouse’s present right [Divorce: ERISA preempts and terminates right]

Question 7

Disability or Workers Comp

Answer 7

Considered wage replacement, so classify according to when received, not earned
-spouse can’t defeat community interest by picking this over retirement benefits

Question 8

Stock Options

Answer 8

1. Reward Past Service = MARRIAGE OF HUG = [years employed to marriage end / years from grant to exercisable] = CP
2. Keep w/ Business = MARRIAGE OF NELSON = [years from grant to marriage / years from grant to exercisable] = CP

Question 9

Goodwill

Answer 9

Generally CP (determined by expert W)

Buy-Sell Agreement w /partners is E but not conclusive

Question 10

Education Debt

Answer 10

Loans: award to party who incurred them

If ed. increased earning capacity: community reimbursed for cost of ed (or loan payment) during marriage

Defenses: (i) spouse also got CP funded ed; (ii) 10 years since degree

Question 11

Statutory Right to Reimbursement

Answer 11

1. CP used to pay prior relation spousal/child support + SP was available
2. Your SP used for Necessity of Spouse when He had SP/CP available
3. Wrong order for tort liability

Question 12

Tort and K Liability

Answer 12

1. Spouse Tortfeasor = award SP
2. TP Tortfeasor = award CP bc action arose during marriage (but at divorce goes to injured spouse if can be traced and not spent)

CP is subject to tort liability of both

1. tort for comm benefit: CP –> tortfeasor’s SP
2. tort not for comm. benefit: tortfeasor’s SP –> CP
   - -Wrong order may lead to statutory reimbursement