Quasi-CP

Question 1

What is “quasi-CP”?

Answer 1

“Quasi-CP” = property acquired by either spouse that would have been CP had the spouse been domiciled in CA at the time of acquisition

Question 2

What are the general characteristics of “Quasi-CP”?

Answer 2

• Quasi-CP retains its SP nature when the parties become domiciled in CA
• the Quasi-CP label becomes relevant only at divorce or death

Question 3

How is quasi-cp treated at divorce?

Answer 3

• At divorce, quasi CP is treated exactly as CP

- Property may be treated as quasi-CP even though one spouse is not domiciled in CA

Question 4

How is quasi-cp treated at death?

Answer 4

• Survivor has 1/2 interest in quasi-CP

- Decedent has no rights in survivor’s quasi-CP

Question 5

With regards to quasi-CP and death, what is survivor’s right to restore certain illusory transfers?

Answer 5

If, prior to his death, a decedent who died domiciled in CA:

• transferred his quasi-CP to a 3rd party for less than substantial consideration; AND
• without consent of surviving spouse

THEN –> the surviving spouse may compel the third party to restore 1/2 of the property (or its value) to decedent’s estate IF, at the time of death, decedent reserved any of the following rights in the property:

1. right to income;
2. power to revoke, consume, or dispose of principal for decedent’s own benefit; OR
3. right of survivorship

Question 6

What is the rule with regards to property acquired in another community property jurisdiction?

Answer 6

For purposes of DEATH only, property acquired in another CP jurisdiction is treated as California CP and not quasi-CP

Question 7

What is the treatment of quasi-CP during marriage?

Answer 7

In general –> quasi-CP is treated as acquiring spouse’s SP during marriage

EXCEPTION–> A creditor may reach one spouse’s quasi-CP to satisfy a debt incurred by other spouse