California Bar Prep: Community |\ |\ |\ |\
Property questions with answers |\ |\ |\
SEPRATE PROPERTY - CORRECT ANSWERS ✔✔Property
|\ |\ |\ |\ |\ |\
acquired and owned before marriage.
|\ |\ |\ |\ |\
Property acquired during the marriage by gift or
|\ |\ |\ |\ |\ |\ |\ |\
inheritance. |\
Rents, issues, and profits of seprate property acquired
|\ |\ |\ |\ |\ |\ |\ |\
before or duirng marriage
|\ |\ |\ |\
property acquired during the marriage in exchange for
|\ |\ |\ |\ |\ |\ |\ |\
separate property including by expenditure of separate
|\ |\ |\ |\ |\ |\ |\
funds.
property acquired after separation
|\ |\ |\
Community Property - CORRECT ANSWERS ✔✔All
|\ |\ |\ |\ |\ |\
property other than separate property acquired during
|\ |\ |\ |\ |\ |\ |\
marriage is considered community property. Each spouse
|\ |\ |\ |\ |\ |\ |\
owns an undivided one-half interest in each CP asset and
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\
liability.
,Quasi Community Property - CORRECT ANSWERS
|\ |\ |\ |\ |\ |\
✔✔Property acquired while in a non-community property |\ |\ |\ |\ |\ |\ |\
state but that would have been classified as community
|\ |\ |\ |\ |\ |\ |\ |\ |\
property if acquired when domicield in California.|\ |\ |\ |\ |\ |\
Marital Economic Community - CORRECT ANSWERS
|\ |\ |\ |\ |\ |\
✔✔Begins at marriage and ends at one spouse's death, or |\ |\ |\ |\ |\ |\ |\ |\ |\
when H and W effect a permanent physical separation.
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\
(actual separation an an intent not to resume the marital
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\
relationship)
For domestic partners, the economic community begins
|\ |\ |\ |\ |\ |\ |\
on registration.
|\
Legal marriage: California recognises marriages that are
|\ |\ |\ |\ |\ |\ |\
valid in other states.
|\ |\ |\
The date of separation is shown by the intent of at least
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
one party not to resume the marital relation and conduct
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\
consistent with that intent. Permanent physical |\ |\ |\ |\ |\ |\
separation suffices as conduct but is not a requirement. |\ |\ |\ |\ |\ |\ |\ |\
Wages EARNED BEFORE marriage but RECEIVED DURING
|\ |\ |\ |\ |\ |\ |\
marriage - CORRECT ANSWERS ✔✔Considered separate |\ |\ |\ |\ |\ |\
property.
,Overcoming the presumption that all property acquired
|\ |\ |\ |\ |\ |\ |\
during marriage is community property - CORRECT
|\ |\ |\ |\ |\ |\ |\
ANSWERS ✔✔Can overcome by showing any of the
|\ |\ |\ |\ |\ |\ |\ |\
following:
-the asset was acquired by gift, bequest, devise, or
|\ |\ |\ |\ |\ |\ |\ |\ |\
descent, or was rent or income from separate property
|\ |\ |\ |\ |\ |\ |\ |\
-the parties enteered into a valid agreement before or
|\ |\ |\ |\ |\ |\ |\ |\ |\
during marriage that the property would not be CP
|\ |\ |\ |\ |\ |\ |\ |\
-both spouses knowingly took title in a form other than CP
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\
-
Acquisitions on Credit During Marriage - CORRECT
|\ |\ |\ |\ |\ |\ |\
ANSWERS ✔✔If use community property and separate
|\ |\ |\ |\ |\ |\ |\
funds to purchase an untitled asset, the portion used from
|\ |\ |\ |\ |\ |\ |\ |\ |\
community property is still considered community
|\ |\ |\ |\ |\ |\ |\
property.
Determining the Character of Credit or Purchase Money
|\ |\ |\ |\ |\ |\ |\ |\
Loan--intent of Lender - CORRECT ANSWERS ✔✔Credit
|\ |\ |\ |\ |\ |\ |\
acquired by one spouse during marriage is presumptively
|\ |\ |\ |\ |\ |\ |\ |\
, community property credit. But borrowed funds (and |\ |\ |\ |\ |\ |\ |\
credit purchases) are ultimately classified according to
|\ |\ |\ |\ |\ |\ |\
the primary intent of the lender. To demonstrate that loan
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\
proceeds or credit purchases are SP, the borrowing |\ |\ |\ |\ |\ |\ |\ |\
spouse must demonstrate that the lender primarily relied
|\ |\ |\ |\ |\ |\ |\ |\
on the borrower's SP in granting the loan or extending the
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\
credit.
|\
Example Question |\
Hal buys a lot near Big Bear Lake for $50,000, paying
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
$10,000 in CP funds and $40,000 with a loan from Bank.
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
At the Bank's insistence, Willow signs the note for the
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\
loan along with Hal. The deed to the lot names "Hal" as
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
the grantee. At the time of the purchase, the lot is at least
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
20% CP because of the $10,000 down payment from CP
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
funds.
1) What about the other 80% acquisition on credit?
|\ |\ |\ |\ |\ |\ |\ |\
-Funds borrowed during marriage and goods purchased
|\ |\ |\ |\ |\ |\ |\
during marriage are presumptively community credit.
|\ |\ |\ |\ |\ |\
Borrowed funds (and credit purchases) are classified |\ |\ |\ |\ |\ |\ |\
according to the primary intent of the lender. We look at |\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
where the lender is looking for satisfaction of the debt.
|\ |\ |\ |\ |\ |\ |\ |\ |\
Property questions with answers |\ |\ |\
SEPRATE PROPERTY - CORRECT ANSWERS ✔✔Property
|\ |\ |\ |\ |\ |\
acquired and owned before marriage.
|\ |\ |\ |\ |\
Property acquired during the marriage by gift or
|\ |\ |\ |\ |\ |\ |\ |\
inheritance. |\
Rents, issues, and profits of seprate property acquired
|\ |\ |\ |\ |\ |\ |\ |\
before or duirng marriage
|\ |\ |\ |\
property acquired during the marriage in exchange for
|\ |\ |\ |\ |\ |\ |\ |\
separate property including by expenditure of separate
|\ |\ |\ |\ |\ |\ |\
funds.
property acquired after separation
|\ |\ |\
Community Property - CORRECT ANSWERS ✔✔All
|\ |\ |\ |\ |\ |\
property other than separate property acquired during
|\ |\ |\ |\ |\ |\ |\
marriage is considered community property. Each spouse
|\ |\ |\ |\ |\ |\ |\
owns an undivided one-half interest in each CP asset and
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\
liability.
,Quasi Community Property - CORRECT ANSWERS
|\ |\ |\ |\ |\ |\
✔✔Property acquired while in a non-community property |\ |\ |\ |\ |\ |\ |\
state but that would have been classified as community
|\ |\ |\ |\ |\ |\ |\ |\ |\
property if acquired when domicield in California.|\ |\ |\ |\ |\ |\
Marital Economic Community - CORRECT ANSWERS
|\ |\ |\ |\ |\ |\
✔✔Begins at marriage and ends at one spouse's death, or |\ |\ |\ |\ |\ |\ |\ |\ |\
when H and W effect a permanent physical separation.
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\
(actual separation an an intent not to resume the marital
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\
relationship)
For domestic partners, the economic community begins
|\ |\ |\ |\ |\ |\ |\
on registration.
|\
Legal marriage: California recognises marriages that are
|\ |\ |\ |\ |\ |\ |\
valid in other states.
|\ |\ |\
The date of separation is shown by the intent of at least
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
one party not to resume the marital relation and conduct
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\
consistent with that intent. Permanent physical |\ |\ |\ |\ |\ |\
separation suffices as conduct but is not a requirement. |\ |\ |\ |\ |\ |\ |\ |\
Wages EARNED BEFORE marriage but RECEIVED DURING
|\ |\ |\ |\ |\ |\ |\
marriage - CORRECT ANSWERS ✔✔Considered separate |\ |\ |\ |\ |\ |\
property.
,Overcoming the presumption that all property acquired
|\ |\ |\ |\ |\ |\ |\
during marriage is community property - CORRECT
|\ |\ |\ |\ |\ |\ |\
ANSWERS ✔✔Can overcome by showing any of the
|\ |\ |\ |\ |\ |\ |\ |\
following:
-the asset was acquired by gift, bequest, devise, or
|\ |\ |\ |\ |\ |\ |\ |\ |\
descent, or was rent or income from separate property
|\ |\ |\ |\ |\ |\ |\ |\
-the parties enteered into a valid agreement before or
|\ |\ |\ |\ |\ |\ |\ |\ |\
during marriage that the property would not be CP
|\ |\ |\ |\ |\ |\ |\ |\
-both spouses knowingly took title in a form other than CP
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\
-
Acquisitions on Credit During Marriage - CORRECT
|\ |\ |\ |\ |\ |\ |\
ANSWERS ✔✔If use community property and separate
|\ |\ |\ |\ |\ |\ |\
funds to purchase an untitled asset, the portion used from
|\ |\ |\ |\ |\ |\ |\ |\ |\
community property is still considered community
|\ |\ |\ |\ |\ |\ |\
property.
Determining the Character of Credit or Purchase Money
|\ |\ |\ |\ |\ |\ |\ |\
Loan--intent of Lender - CORRECT ANSWERS ✔✔Credit
|\ |\ |\ |\ |\ |\ |\
acquired by one spouse during marriage is presumptively
|\ |\ |\ |\ |\ |\ |\ |\
, community property credit. But borrowed funds (and |\ |\ |\ |\ |\ |\ |\
credit purchases) are ultimately classified according to
|\ |\ |\ |\ |\ |\ |\
the primary intent of the lender. To demonstrate that loan
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\
proceeds or credit purchases are SP, the borrowing |\ |\ |\ |\ |\ |\ |\ |\
spouse must demonstrate that the lender primarily relied
|\ |\ |\ |\ |\ |\ |\ |\
on the borrower's SP in granting the loan or extending the
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\
credit.
|\
Example Question |\
Hal buys a lot near Big Bear Lake for $50,000, paying
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
$10,000 in CP funds and $40,000 with a loan from Bank.
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
At the Bank's insistence, Willow signs the note for the
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\
loan along with Hal. The deed to the lot names "Hal" as
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
the grantee. At the time of the purchase, the lot is at least
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
20% CP because of the $10,000 down payment from CP
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
funds.
1) What about the other 80% acquisition on credit?
|\ |\ |\ |\ |\ |\ |\ |\
-Funds borrowed during marriage and goods purchased
|\ |\ |\ |\ |\ |\ |\
during marriage are presumptively community credit.
|\ |\ |\ |\ |\ |\
Borrowed funds (and credit purchases) are classified |\ |\ |\ |\ |\ |\ |\
according to the primary intent of the lender. We look at |\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
where the lender is looking for satisfaction of the debt.
|\ |\ |\ |\ |\ |\ |\ |\ |\
