Tom and Sarah are married and live in California. Before their marriage, Tom purchased a rental property using only his separate funds. During the marriage, Sarah managed the property and made improvements using community funds. In a divorce proceeding, how would a California court MOST likely classify this property?
Correct Answer
B) Tom's separate property, but the community has a right to reimbursement for its contributions
Under California Family Code §2640, when community funds are used to improve one spouse's separate property, the community is entitled to reimbursement for contributions, without interest. The property itself retains its separate property character. Note that the reimbursement right is dollar-for-dollar of the community contribution, not a proportional share of appreciation.
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Maria and David, a married couple in California, purchase a home together. The deed does not specify any form of ownership. Under California law, how is the property presumed to be held?
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Under California Civil Code §761, a life tenant's interest is classified as a freehold estate. Richard grants a life estate to his mother Betty in a California home, with the remainder to his daughter Kim. Betty, as life tenant, removes a load-bearing wall and demolishes the attached garage without consent. Under California law, the remainderman Kim's remedy for this waste is: