California Community Property Essay Workshop

Comprehensive vocabulary flashcards covering the approach, definitions, and specific rules of California Community Property as taught by Professor Christopher Ide-Don.

California Community Property State

A state where the marital economic community begins upon marriage and ends at divorce, death of a spouse, or a permanent separation.

Community Property (General Presumption)

Property, earnings, or debt acquired during marriage by either spouse while living in California.

Separate Property (General Presumption)

Property acquired by either spouse before marriage, by gift or inheritance during marriage, or after divorce or a permanent separation.

Quasi-Community Property

Property acquired by a married couple while living in a non-community-property state that would be characterized as community property if the couple had been living in California at the time of acquisition.

Permanent Separation

Occurs when there is a complete and final break in the marital relationship, proved by (1) at least one spouse expressing the intent to end the marriage and (2) conduct consistent with that intent.

Putative Spouse

A person who has a good-faith belief that there is a valid marriage when in fact it is not legally valid.

Quasi-Marital Property

All property that would have been community property or quasi-community property if the marriage had been valid, relevant to putative spouse cases.

Premarital Agreement

A written and signed agreement made before marriage allowing couples to avoid California community-property laws; it is invalid if not voluntary or if unconscionable when executed.

Anti-Lucas Legislation

Law applying after January 1, 1984, stating that all jointly held property acquired during marriage is presumed community property at divorce, unless an express writing says otherwise.

Separate Property Reimbursement (Joint Title)

Under Anti-Lucas, a spouse contributing separate property to a joint title purchase has a right to reimbursement for the contribution amount, but not for its increase in value.

Lucas Rule

Law applying before January 1, 1984, where property in joint form was presumed community property at divorce, and separate property used for the purchase was presumed a gift with no right to reimbursement.

Transmutation

Changing the character of property from separate to community, community to separate, or from one spouse’s separate property to the other's.

Transmutation Requirements (Post-1985)

Effective January 1, 1985, a transmutation must be in writing and contain language expressly stating ownership is changing, signed by the party whose interest is adversely affected.

Transmutation Gift Exception

Personal tangible gifts (e.g., jewelry) between spouses for personal use that are not substantial in value considering the financial circumstances of the marriage do not require a writing.

Equal Management and Control

The principle that each spouse has authority over community property, though both must participate in the sale or lease (longer than one year) of real property.

Fiduciary Duty of Spouses

The obligation to act in the highest good faith and fair dealing regarding the management and control of community property.

Pereira Approach

Used when business value increase is due to personal skills and effort: \text{Separate Property} = \text{value at marriage} + (\text{value at marriage} \times 10\text{%} \times \text{years of marriage}).

Van Camp Approach

Used when business value increase is due to the character of the property/market: $\text{Community Property} = (\text{reasonable value of services} - \text{annual family expenses}) \times \text{years of marriage}$.

Direct Tracing Method

A method to prove separate property funds in a commingled account by showing sufficient funds were available at the time of purchase and were intended for that asset.

Exhaustion Method

A method to prove separate property funds in a commingled account by showing all community property funds were spent on family expenses at the time the asset was purchased.

Educational Degree Reimbursement

The community is entitled to reimbursement for education costs if community funds were used, the earning capacity was substantially improved, and the right was not contractually waived.

Education Reimbursement Defenses

Defenses include: more than 10 years passed and the community benefited, the other spouse also received community-funded education, or the education reduced the need for spousal support.

Personal-Injury Recovery

Characterized as separate property if the injury occurred before marriage; community property if during marriage; but generally awarded as separate property to the injured spouse at divorce.

Intestate Succession of Community Property

If a spouse dies without a will, the surviving spouse is entitled to 100\text{%} of the community property.

Marital Liability (Community Property)

The community property and quasi-community property are liable for debts incurred by either spouse before or during marriage.

Necessaries of Life

Living costs (food, shelter, medical) for which a spouse's community and separate property are liable for the other spouse’s debts, even while living apart if essential to sustain life.

Tort Liability (Benefit of Community)

If a tortfeasor spouse acts for the community's benefit, liability is satisfied first from community property and then from the tortfeasor’s separate property.

Tort Liability (No Benefit to Community)

If a tortfeasor spouse does not act for the community's benefit, liability is satisfied first from the tortfeasor's separate property and then from community property.