Summary: Community Property

Read the summary and the most important questions on Community Property

• 2 Community Property

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• Separate Property (SP)

  Separate property is: (i) property owned or claimed by the spouse before marriage; (ii) property acquired by the spouse during marriage by gift, devise, or descent; and (iii) recovery for personal injuries sustained by the spouse during marriage, except any recovery for medical expenses and loss of earning capacity during marriage. 

• Installment Purchases Begun Before Marriage—Separate Property

  Under the inception of title rule, the separate or community character of property is determined at the time it is acquired, and no subsequent actions will alter its character. If an asset is acquired before marriage, it is the acquiring spouse's separate property. Where installment payments on a purchase are begun before marriage and completed after marriage, the purchase is separate property, even if the bulk of payments are made with community funds.

• Assets Purchased During Marriage--Presumptively CP

  Property purchased with both separate and community funds is considered mixed property. Here, both the wife and husband's inheritance is separate property, regardless of who used Blackacre. Note, there is a presumption that property acquired during the marriage is community property. Wife must prove by clear and convincing evidence that Blackacre was partially purchased using her separate funds (her inheritance).

• Assets Acquired on Credit During Marriage—Presumptively Acquired onCommunity Credit

  
  An asset acquired on credit is presumptively acquired on community credit.  The source of funds later used to pay off the credit obligation is irrelevant because ownership is determined at the time the asset is purchased on credit. 

• Claims for Economic Contribution ("Reimbursement")

  Reimbursement provides a spouse a remedy when one marital estate has been used to either contribute to or improve another marital estate. However, the court may not recognize a marital estate's claim for reimbursement for: (i) the payment of child support, alimony, or maintenance; (ii) the living expenses of a spouse or child of a spouse; (iii) contributions of property of a nominal value; (iv) the payment of a liability of a nominal amount; or (v) a student loan owed by a spouse.

• Cap on Amount of Spousal Maintenance

  The amount of spousal maintenance may not exceed the lesser of $5,000 per month or 20% of the obligor spouse's monthly gross income.

• Spousal Maintenance - Presumption

  The court presumes that a request for spousal maintenance is unwarranted if it is based on spouse's lack of ability to earn sufficient income after a marriage lasting longer than 10 years. If the requesting spouse is developing skills to meet minimum needs or exercising due diligence to earn sufficient income, the presumption is overcome. In the case of developing skills, the requesting spouse must show development both during separation and while the dissolution suit is pending.

• For the court of appeals to reverse a trial court's division of property, what must the appellant show?

  The court of appeals gives great deference to a trial court's exercise of discretion. Even where the division of property is greatly disproportionate, the appellant has the burden to show that there is no rational basis for the division made by the trial court. The appellant must show from the record the division was so disproportionate as to be manifestly unjust such that there is a clear abuse of discretion.

• Requirement where court deviates from child support guidelines: Findings of Fact

  If CT deviates from guidelines, must state (1) why guideline amount unjust/inappropriate (state specific reasons for variance) and (2) net resources of obligor + obligee and the & applied by court to set support obligation.

• 6 Ways to Collect Delinquent Child Support

  1. Mandatory Withholdings of Earnings for Child Support 
  2. Contempt 
  3. Suspension or Nonrenewal of Licenses + Disqualification for State Loans and Contracts 
  4. Money Judgment for Arrearages 
  5. Child Support Lien for Arrearages
  6. Uniform Interstate Family Support Act 
  7. Full Faith + Credit for Child Support Orders