Community Property.txt

• 1. premarriage
• 2. acquired by gift/inheritance
• 3. acquired by partition or exchange of CP
• 4. tracing (prop purchased w/ SP)
• 5. tort: receipt for personal injury except for med expenses or loss of earning capacity

• 1. all but separate property acquired during marriage
• 2. income from SP is CP (but sole mgmt) unless:

• - agree otherwise in writing
• - gift one spouse to other - income on that property is presumed SP
• - if partitioned, can agree in writing that i on that is SP

• - all assets acquired dur marriage
• - all assets acquired w/ credit during marriage
• - assets on hand at time of event (death, divorce, etc.)

- Burden: C/C by party contending otherwise

H/W sell NJ home for 40k

Move to TX

Buy 100k home - 40k down

• = 40K Separate property (if marr term by death)
• = 60K Community Debt

If Divorce = 40K Quasi Community Property

If property would have been CP in JN under TX laws, then = QCP here (upon divorce)

land is not communtiy property, but states will TX courts will recognize other spouse's interest

1. only can overcome presumption w/ "non recourse note" where borrowing spouse is also not liable

doesn't even matter if other spouse didn't sign/guarantee/encumber assets

CP or SP at time acquired (except retirement assets)

subsequent events don't affect characterization

(but claim for economic contribution? - still exist?)

SP used = title holder's SP (by gift)

CP used = CP, but only slight evidence needed to ovecome presumption of CP

• Yes. Using community funds to
• reduce secured debt or making improvements on SP)

1st premium determines CP or SP

• If bought in SP state and brought to TX
• = SP upon death
• = QCP upon divorce

Claim for reimbursement? still exist? NO.

and claim for contribution not available b/c not reducing secured debt or making improvements on SP

claim for fraud on spouse if used CP, but not named beneficiary

- divides by % married / not married upon term by divoce

- but spouse has no interest if died

assets in account upon marriage, including appreciation = SP

additional contributions, as well as income and dividends on both SP and CP = CP

CP or SP based upon when received, not earned

Prorated time married v. unmarried

Inception of Title, but:

- claim for equitable reimbursement - REPEALED

• - value of time/talent (minus)
• - value of time necessary to preserve (minus)
• - compensation received by H in dividendes & bonus (which was CP)

"Community Out First"

• - $25K into account
• - up to $50k w/ CP
• - down to $12K
• -up to $50 (CP)

=$12k is SP, rest is CP (lowest balance, spent CP, then SP down to $12k -- went back up to CP, but was CP

"just and right" but can't award SP of one to the other

Cannot gift property to H/W as CP (actually 1/2 SP of each)

Can set aside SP for payment of child support though

as long as not so disproportionate to be manifestly unjust and an abuse of discretion

- age, earning power, need for support, size of estate, tax

- later discovered CP is divisiable

- married 10 yrs, lack property, lack skills/disabled/custody of disabled child

• - lesser of:
• -2500/mo and 20% of monthly income

- limited to time to get job/sklls and can be modified

LI = predeceased

ERISA = x-spouse takes

Property Casualty: go to benenficiary ex-spouse only if awarded property

goodwill not divisible

shares are divisible

K for sale is divisible

professional education not divisible

• H/W
• H also marries Z
• makes 100k

• 50K = Z SP (unless knows of other marriage)
• 50K = H/W CP

but if W dies, then marries Z = all CP

income for life, then principal to kids

income = SP

income for life, but can w/draw P at 40

income = SP until 40

Delay Rentals are only CP interest

Rest is SP

• CP:
• - Cash dividendes
• - Interest earned on IRA

• SP:
• - Stock Dividence
• - stock split
• - cap gains from sale

Cash Dividend (dividend and interest received by mutual fund) = CP

Cap Gain Dividend (share of sale of mutual fund holding) = SP

puppies are CP

• - in writing
• - signed
• - no consideration necessary
• - can make i from SP = SP
• - can include testamentary requirements
• - can alter homestead, spousal support, fam allowance, etc. (but not child support)

alter child support

say X will be CP (b/c not married yet)

1. involuntarily executed; or

• 2. uconscionable when made &
• - no fair disclosure of property/obligation
• - rigt to disclosure not waived
• - no adequate knowledge of property

(burden on party seeking to set aside)

• 1. equalize estate
• 2. bump up in basis
• 3. must be in writing, signed by both parties
• but lose some creditor protection; exposes to divoce; lose abilty to dispose of by will;

both must sign

valid against BFP if filed in county where property located

valid against preexisting unsecured creditors (unless intent to defraud)

1. must be in writing and signed by both (whereas between ROS account betweenparent and child only needs signing by deceased party)

2. either spouse may revoke w/ notice to other

3. Court order: not a probate asset, but probate won't then vest title, so stattue authorizes proceeding where orders agreement valid

4. Exec unaware and sells assets: BFP protected and exec not liable

5. 3rd party buys from SS w/o notice of revocation: as long as 6 months after dead, purchaser takes title against decednet's successors

Spouse can make "reasonable gifts" of CP so long as not so disproportionate as to be in fraud of spouse's communtiy rights:

1. relationship to donee

2. amount in relation to estate

3. special circumstances

4. spouse adequately provided for out of remaining estate

5. was gift of donor's sole mgmt CP

(same test for setting aside LI proceeds where premiums paid w/ CP)

• H sets up trust w/ D as Trustee w/ CP
• H income for life
• W income for life
• D can't sell, vote, etc. w/o H's consent
• on death of survivor, D gets property

= illusory b/c retained control, subject to challenge

if H had no control over D, not illusory (even though could revoke)

Divorce has no affect on creditor's rights

if W signed note = liable, even if court makes H pay entire note as part of just and right division of assets/liabilities

if W didn't sign note = not liable, and no personal action against W available. but can seek to have constructive trust imposed on the CP set aside to her

but W

- Separate Property

- W's sole mgmt CP: salary, income from SP

- joint mgmt CP: if sole mamagement of each spouse is combined

- H's sole mgmt CP: salary, income from SP

- H's SP

property titled in one spouse's name (or in one spouse's possesson, if asset doesn't have title) is presumptively subject to that spouse's sole management

BFP protected

Judgment against W for $25k from a tort

Creditor's reach

• CP: yes
• W's SP: yes
• W's sole mgmt CP: yes
• Joint mgmt CP: yes
• H's sole mgmt CP: yes
• H's SP: NO

Both own whole thing

Each can sell his/her portion

don't have to be married

not automatically ROS

Only between married couples

each own entire thing

automatically ROS