CAS Bar Family Law 2 — Questions and Answers
Question 1: A spouse uses $30,000 of separate property funds as a down payment on a home purchased during marriage with community funds. Under the Moore/Marsden rule, the separate property spouse is entitled to:
- Nothing, as the property is entirely community once commingled
- A proportionate share of the home's appreciation based on the separate property contribution (Correct answer)
- Full reimbursement of $30,000 plus statutory interest
- Reimbursement only if the other spouse consents in writing
Correct answer: A proportionate share of the home's appreciation based on the separate property contribution
Moore/Marsden gives the contributing spouse a pro rata share of the home's appreciation proportional to the separate property down payment relative to the purchase price.
Question 2: Under California law, 'quasi-community property' refers to:
- Property acquired in California before marriage
- Property that would have been community property had it been acquired while domiciled in California (Correct answer)
- Property held in joint tenancy by the spouses
- Business interests acquired during marriage in a non-community property state
Correct answer: Property that would have been community property had it been acquired while domiciled in California
Quasi-community property is property acquired while domiciled elsewhere that would be community property under California law if acquired here.
Question 3: Under California Family Code § 852, for a transmutation of property to be valid, it must be:
- Agreed upon orally in front of two witnesses
- Made in writing and expressly declared by the spouse whose interest is adversely affected (Correct answer)
- Approved by the court
- Notarized and recorded with the county recorder
Correct answer: Made in writing and expressly declared by the spouse whose interest is adversely affected
Family Code § 852 requires that transmutations be made in a writing that expressly states the change in character signed by the adversely affected spouse.
Question 4: A spouse dissipates $20,000 in community assets on gambling after the date of separation. The court will most likely:
- Ignore the dissipation as the funds were spent post-separation
- Award the other spouse a $10,000 credit from the remaining community estate
- Award the other spouse a $20,000 credit from the remaining community estate (Correct answer)
- Order the gambling spouse to repay the full $20,000 from future earnings
Correct answer: Award the other spouse a $20,000 credit from the remaining community estate
Courts charge the dissipating spouse their share and award the other spouse a dollar-for-dollar credit from remaining community assets under the fiduciary duty rules.
Question 5: Under California law, pension benefits earned by a spouse during marriage are:
- Entirely separate property belonging to the employee spouse
- Community property subject to division regardless of when retirement occurs (Correct answer)
- Community property only if the marriage lasted until the date of retirement
- Divisible only if the marriage lasted 10 or more years
Correct answer: Community property subject to division regardless of when retirement occurs
Pension benefits earned during marriage are community property; the time-rule formula allocates benefits between community and separate periods.
Question 6: A spouse receives a personal injury settlement during marriage for injuries suffered during marriage. Under California Family Code § 780, the settlement funds are:
- Community property subject to equal division
- Separate property of the injured spouse upon dissolution (Correct answer)
- Held in trust for the injured spouse's future medical needs
- Community property unless the injury was caused by the other spouse
Correct answer: Separate property of the injured spouse upon dissolution
Under § 781, personal injury damages are community property during marriage but are assigned to the injured spouse upon dissolution, except for damages for loss of community property.
Question 7: A wife purchases stock during marriage using funds from a pre-marital savings account she never commingled. Upon divorce, the husband claims the stock is community property. The most accurate statement is:
- The stock is community property because it was acquired during marriage
- The stock is separate property if she can trace it to her pre-marital account (Correct answer)
- The stock is presumed community and the burden is on her to rebut by clear and convincing evidence
- The stock is half separate and half community property
Correct answer: The stock is separate property if she can trace it to her pre-marital account
Property acquired during marriage is presumed community, but the spouse can rebut by tracing the funds to a separate property source.
CAS Bar Family Law 2
A spouse uses $30,000 of separate property funds as a down payment on a home purchased during marriage with community funds.
Under the Moore/Marsden rule, the separate property spouse is entitled to: