Wendy's CommPpty Outline (Rich's format)

Wendy's CommPpty Outline (Rich's format) - WENDYS COMMUNITY...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
WENDY’S COMMUNITY PROPERTY OUTLINE (Rich’s format) PAGE 1 OF 5 CHARACTERIZATION SOURCE Dependant on the time and manner of acquisition of the property so changing an asset’s form does not change its characterization (unless transmutation) C OMMUNITY P ROPERTY All property acquired during marriage while domiciled in CA is presumed to be CP unless REBUTTED by tracing to a SP source OR by agreement in the form required by law and includes: Earnings And Accumulations from effort, skill, and industry of a spouse during marriage ( O NEROUS I NCOME ) Credit Acquisitions acquired during marriage, including general credit Personal Injury Award if the c/a arose during the marriage ( CEPI -status at dissolution; if un-commingled, it is assigned to the injured spouse unless the interests of justice require otherwise) Mere possession of an asset during marriage does not give rise to the GCP , but possession at the end of a lengthy marriage does give rise to an inference of acquisition during the marriage, so the GCP applies GCP does not apply to property held at death if the property was acquired during a marriage that terminated more than 4yrs before the death. Property may be divided any time after dissolution while ex-spouses are alive S EPARATE P ROPERTY is all property acquired Before Marriage (and during marriage if it is L UCRATIVE I NCOME --not due to spouse’s effort, skill, or industry) After Judgment Of Dissolution Earnings after Separation , when the parties have come to a parting of the ways, with no present intent of carrying on a marital relationship Gift , Bequest , Devise , Descent (inter vivos, testamentary personal property, testamentary real property, intestate) -- if gifted to an individual spouse Personal Injury Award if the c/a arose outside of the marriage or is interspousal R ENTS , I SSUES , P ROFITS maintain the same character as the property used to acquire or produce them, as an application of the tracing doctrine. B ORROWED M ONEY AND C REDIT T RANSACTIONS IS NOT APPORTIONED The GCP presumption (that all property acquired during marriage is presumed to be CP) extends to acquisition on credit during the marriage and the party asserting the SP interest bears the burden to rebut this presumption REBUTTED by showing lender intended to rely primarily (or solely) on SP for security at the time of extending the credit . A reasonable creditor test applies. The Lender Rule is intended to rebut the GCP, it does not characterize the property I NSTALLMENT C ONTRACT S IS APPORTIONED (such as life insurance) Apportionment by Monetary Contribution Ratio or Time Rule : #payments made during marriage/total #payments OR $paid during marriage/total $paid Whole Life policies build cash value and have a pro rata ownership--contribution ratio or time rule Term Life policies have no cash value to divide and are characterized by the last payment paid, but possibly some value in right of renewal if a spouse becomes uninsurable during the final term Casualty policy proceeds take on te character of the insured item, but the community may be reimbursed in payments can be traced to CP
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

Page1 / 5

Wendy's CommPpty Outline (Rich's format) - WENDYS COMMUNITY...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online