Tort and Contract Liability

Question 1

if other spouse was tortfeasor

Answer 1

SP (otherwise tortfeasor benefits)

Question 2

third party tortfeasor

Answer 2

CP - however upon divorce if the funds can be traced and not already spent, will be awarded entirely to injured spouse

On death, will be treated as CP

Question 3

judgments whena spouse is a tortfeasor

Answer 3

can reach CP

If spouse was doing something to benefit to community (driving to work or kids) then use CP first adn then SP

if spouse was not performing act on community, then from SP first and tCP second

other spouse’s SP can’t be reached

Question 4

Management Rules

Answer 4

General Rule – equal management powers – Each spouse has equal management and control over all community property, and thus has full power to buy or sell CP and contract debts without the other spouse’s joinder or consent.

Personal Belongings Exception – One spouse cannot sell or encumber personal property used in family dwelling (furniture, clothing, etc.) without written consent of other spouse. Transaction voidable by other spouse at any time.

Business Exception – Applies when a spouse operates a business interest that is all or substantially all community personal property and has primary management and control of all the business. While this spouse can act alone in all transactions, if the spouse sells, leases, or otherwise encumbers substantially all of the personal property used in the business, must give written notice to other spouse.

Question 5

Real Property

Answer 5

To convey real property, need one spouse.

1 year statute of limitations even if the purchaser is a BFP. If they knew of the marriage then there’s no statute of limitation

General rule – Neither spouse can transfer or encumber their ½ interest in real CP (house). Only entire interest can be transferred or encumbered.

Exception – A spouse can unilaterally encumber her ½ interest in real CP to pay the family attorney representing her in a divorce action –

Question 6

Debt

Answer 6

debt collectors of one spouse can reach CP. The only exception is if nondebtor spouse keeps their money in a separate account and doesn’t commingle AND debt is premarriage

Can’t reach SP though

Question 7

medical bills

Answer 7

can even reach non-needing spouse’s SP. They coudl seek reimbursement later

Question 8

Once CP becomes SP

Answer 8

debtors can’t reach the now SP unless the spouse incurred the debt or was assigned the debt by teh court