Special Classifications Flashcards
When can a personal injury spouse recover from a 3rd party?
Injury before or after marraige = recovery SP, but injured spouse may reimburse CP or SP of uninjured spouse for injury-related expenses.
During marriage = Recovery is CP.
What is the right to reimbursement for education?
The community has a right to reimbursement for a spouse’s education if CP funds were used to pay for expenses, the earning capacity of the spouse was substantially enhanced, and spouses didn’t waive right to reimbursement.
There is no right to reimbursement if 10 years has passed and the CP has substantially benefitd, the other spouse also received an education, or the education reduced the need for spousal support.
Explain business and professional goodwill
The qualities that generate income beyond the derived labor of a spouse.
Distribution of Stock Options
Any stock options that are awarded during marriage are CP and courts use the time-rule to apportion the CP ownership.
Define
The Time Rule
The time rule is:
The date the option was awarded > the date the MEC ends divided Date the Option Awared > Date it can be exercised = % of CP
Pension Benefits
Pension benefits earned during marriage are CP, and the courts use the time rule to apportion CP ownership interst.
Time rule for pension: Years employed during marraige divided by total years of employment = CP %.
Bits & Bobs of Remaining CP Law
- Armed Forces Life Insurance Benefits: SP
- Social Security: SP
- US Savings Bonds: SP (unless fraud)
- RR Retirement Benefits: SP if benefits are parallel to SS; CP if supplemental
- Military Retirement: CP
- VA Disability: SP
- Civil Service Pension: CP
Severance Pay
- If it resembles retirement pension because it was earned through employment = CP
- If it is intended to replace lost earnings treated like SP after divorce or permanent separation.
