Source: http://www.kinseylaw.com/clientserv2/famlawservices/property/propertydivision.html
Timestamp: 2018-03-19 18:15:02
Document Index: 3355130

Matched Legal Cases: ['§ 770', '§ 21', '§ 770', '§ 772', '§ 771', '§ 771', '§ 770', '§ 760', '§ 850', '§ 1500', '§ 125', '§ 2251', '§ 1100', '§ 2552', '§ 801', '§ 813', '§ 815', '§ 822', '§ 2601', '§ 2337']

California Community Property & Separate Property Division Information - Family Law Attorney (Lawyer)
DIVISION OF SEPARATE AND
Three Basic Steps In Dividing Property In A California Divorce Action:
Separate Property - General Concepts: Property acquired before marriage is the acquiring spouse's separate property, as is property obtained during marriage that can be traced to a premarital acquisition. [Ca Fam § 770(a)(1) & (3) ("rents, issues and profits" of SP are SP) Like community property, separate property does not lose its character as such by a mere change in form or identity.
Property acquired during marriage by "gift, bequest, devise, or descent" (i.e., inter vivos or testamentary gift or intestate succession) is the acquiring spouse's separate property. [Ca Const. Art. I § 21; Ca Fam § 770(a)(2)]
A spouse's "earnings and accumulations" after a judgment of legal separation are his or her separate property (Ca Fam § 772); and so are a spouse's "earnings and accumulations" while living separate and apart from the other spouse (Ca Fam § 771(a)).
"Separation" within the meaning of Ca Fam § 771(a) requires more than a rift in the spouses' relationship. The date of "separation" occurs only when the parties have come to a parting of the ways with no present intent to resume their marriage and their conduct evidences a complete and final break in the marital relationship.
Community Property - General Concepts: All property acquired during marriage and before separation, other than by gift or inheritance (Ca Fam § 770(a)(2)), is presumptively community property. [Ca Fam §§ 760, 771(a)]
Transmutation: Both before and during marriage, spouses may agree to change the status of any or all of their property (presently owned or thereafter acquired); i.e., they can convert separate into community property, community into separate property, or separate property of one into separate property of the other. [Ca Fam § 850(a),(b) & (c); see also Ca Fam § 1500--spouse's property rights prescribed by statute may be altered by premarital agreement or marital property agreement] The process is commonly referred to as "transmutation."
"Quasi-Community Property": For purposes of a property division in marital actions or the rules governing marital property debt liability, "quasi-community property" is (i) real and personal property, wherever situated, which would have been community property had the owner spouse been domiciled in California at the time of acquisition, and (ii) any property acquired in exchange for such property. [Ca Fam § 125(a) & (b)]
The establishment of a California marital domicile may trigger California "quasi-community property" law, under which the parties' common law separate property will be treated as if it were community property for certain purposes.
Quasi-Marital Property: The characterization of "marital" acquisitions as community property necessarily assumes the parties were validly married. Nonetheless, in a nullity proceeding to terminate a void or voidable marriage, California "quasi-marital property" law recognizes normal community property rights in favor of a party who has "putative spouse" status (good faith belief in validity of marriage). [Ca Fam § 2251(a)(2)]
Obligation To Disclose Value: Each spouse's fiduciary obligations in the management and control of the community estate include the duty (a) to fully disclose to the other spouse "all material facts and information regarding the existence, characterization and valuation of all assets in which the community has or may have an interest and debts for which the community is or may be liable"; and (b) upon request, to "provide equal access to all information, records, and books that pertain to the value and character of those assets and debts." [Ca Fam § 1100(e) (emphasis added)]
Fair Market Value: Unless the parties stipulate or agree to accept some other measure of value (e.g., cost or book value), an equal division of the community estate must be predicated on fair market value. [Marriage of Cream (1993) 13 Cal.App.4th 81, 88-89, 16 Cal.Rptr.2d 575, 579] For purposes of effecting an equal property division upon marriage dissolution or legal separation, "fair market value" of a marketable asset is the highest price on the valuation date that would be agreed to by (i) a seller, who is willing to sell but under no obligation "or urgent necessity to do so," and (ii) a buyer, who is ready, willing and able to buy but under "no particular necessity for so doing." [Marriage of Cream, supra, 13 Cal.App.4th at 89, 16 Cal.Rptr.2d at 579]
Date Of Valueation: With few exceptions, community assets and liabilities subject to the court's disposition ordinarily must be valued "as near as practicable to the time of trial." [Ca Fam § 2552(a)]
Expert Testimony: A qualified expert can testify as to value (e.g., appraisers, accountants, actuaries or real estate brokers/salespersons). [Ca Evid §§ 801, 813(a)(1), 814]
Owner's Testimony: The property owner or owner's spouse is competent to testify as to the value of his or her own property even though not qualified to testify as an expert. [Ca Evid §§ 813(a)(2) & (c), 814]
Comparable Sales: A witness offering opinion testimony may take into account as the basis of his or her opinion evidence of the price paid for the property if recently purchased; or evidence of market prices or recent sale prices for comparable (similar) property. [Ca Evid §§ 815, 816] However, mere offers to buy or sell certain property are inadmissible to prove the property's value. [Ca Evid § 822(a)(2) & (b)]
Asset Distribution Or Cash-Out Division: The Court distributes one or more items to one spouse and items of equal value (which may include an equalizing promissory note) to the other (Ca Fam § 2601).
Reservation Of Property Division Jurisdiction: The court may bifurcate the action and grant a "status only" judgment of dissolution or legal separation, expressly reserving jurisdiction to divide the community estate and resolve all other pending issues at a later time. [Ca Fam § 2337] Additionally, where contingencies certain to occur at some finite future time render it impracticable to apportion and fix a value on particular community interests, trial courts may properly act within their discretion by reserving jurisdiction to value and divide specified community assets at a later time. [Marriage of Kilbourne (1991) 232 Cal.App.3d 1518, 1524-1525, 284 Cal.Rptr. 201, 204-205] A reservation of jurisdiction may also be appropriate where there is a potential reimbursement claim but the amount thereof turns on contingencies not yet fixed at the time of the property division trial. [Marriage of Feldner (1995) 40 Cal.App.4th 617, 626, 47 Cal.Rptr.2d 312, 317]