Rights associated with CP

Question 1

Fiduciary Duties regarding Management and Control of Property

Answer 1

1. Full Disclosure of Material Facts
2. Good faith and fair dealing
3. Act without gross negligence or recklessness in investing

Question 2

Duties of Managing Spouse

Answer 2

-Duty to act without gross negligence
-Duty to accont concerning CP to extent necessarily to allow other spouse to exercise rights
Duty to Secure Consent to transfer CP

Question 3

Breach of Duties re Management of CP and Damages

Answer 3

Claim exists only if substantial impairment to interests

Question 4

Statute of Limitations for Claims against Spouse

Answer 4

Within 3 years of Act OR upon death or divorce

Question 5

Effect of Transfer w/o consent

Answer 5

Transfer is void and purchase price need not be returned unless BFP of real property (who had no notice of marital status)

Question 6

Duty to Support

Creditors Rights

Answer 6

Each spouse is personally liable for necessities until officially divorce

Question 7

Order of Debt Satisfaction for Creditors

Answer 7

If CP: CP first then SP
If SP: SP of debtor first, then CP –> NOT other SP if debt held in seperate account

Question 8

Creditor Rights at Divorce

Answer 8

Personal liability for all debts incurred or assigned by Court –> paying spouse has right to reimbursement if their SP used to satisfy the other’s debt

Question 9

Creditor’s Rgihts at Death

Answer 9

Property passing through Probate: each debt allocated according to how it was classified

Property passing outside of Probate: surviving spouse personally liable against any CP, quasi-CP and decedent’s SP that passes to surviving spouse