1. After 5 years of marriage, Husband and Wife and wife separate and file for divorce. The divorce proceedings are amicable and the spouses reach a property settlement agreement as part of their divorce. The agreement provides that Wife is awarded the community property stocks and bonds valued at $50,000. At the time of the divorce, Husband owes $30,000 to a supplier. After the divorce, the supplier obtains a judgment for the entire $30,000 debt but only collects $10,000 from husband. After the divorce, the supplier seeks to reach the securities awarded to Wife. What will be the result?

 

a. The supplier won't be able to reach any of the stocks and bonds because they were awarded to Wife.

 

b. The supplier will be able to reach $25,000 of the stocks and bonds awarded to the wife.

 

c. The supplier will be able to reach the stocks and bonds to satisfy the remaining $20,000 debt.

 

2. During marriage, Hank starts a construction company. He incurs credit card debt of $25,000 in connection to his business expenses and subsequently defaults on the credit card payments. The credit card company attempts to collect payment from the community. Hank sustains significant injuries on a snowboarding vacation and incurs $45,000 in medical expenses of which were not covered by his medical insurance.

Can community property be reached to satisfy the $25,000 in business credit card debt?

3. In 2005, Hank starts a construction company. He incurs credit card debt of $25,000 in connection to his business expenses and subsequently defaults on the credit card payments. He closes the business in 2010 but never resolves the credit card debt. In 2011, Hank meets and marries Wynona. While on their honeymoon, Hank sustains significant injuries on a snowboarding vacation and incurs $45,000 in medical expenses of which were not covered by his medical insurance. A few months later, the credit card company attempts to collect payment from the community. 

Can community property be reached if debt was incurred by Hank before marriage to Wynona?

4. In 2005, Hank starts a construction company. He incurs credit card debt of $25,000 in connection to his business expenses and subsequently defaults on the credit card payments. He closes the business in 2010 but never resolves the credit card debt. In 2011, Hank meets and marries Wynona. While on their honeymoon, Hank sustains significant injuries on a snowboarding vacation and incurs $45,000 in medical expenses of which were not covered by his medical insurance. A few months later, the credit card company attempts to collect payment. At the time the community had no money and assets. However, Wynona had substantial savings from before marriage. 

Can Wynona's separate property be reached in satisfaction of $25,000 business debt?

 5. Ben and Cassie are married. For their anniversary, Ben paid $10,000 of community property for a woman's diamond tennis bracelet as a gift for Cassie. On divorce, Cassie claims the bracelet is her separate property. Ben says the gift was an invalid transmutation, and the bracelet is community property. Cassie argues § 852(c) validates the gift. A tennis bracelet is jewelry. Only Cassie wears the bracelet. The marital standard of living is middle class. Ben earns $150,000 and Cassie does not work. Ben saved for months to afford the bracelet. 

Who will prevail?Why?

 6. Bill and Darla have been married for 20 years. They earned a good salary during marriage and invested well. They both retired at 65 and had close to 2 million dollars in retirement investments. Their only son decided to go to medical school. Without discussing it with Darla, Bill agrees to pay $150,000 towards their son's medical school tuition as a gift to him. A few months later the spouses separate and Darla finds out about the tuition payment during the divorce proceedings. Bill argues that he was exercising management and control, Darla doesn't agree. Who wins? Eleborate

 7. During marriage, Ted works as a plumber. He is a saver but Cindy is a spender. Each paycheck he deposits in the parties joint checking account and each month Cindy spends the entire paycheck on clothing, eating out and lavish vacations. Finally fed up by Cindy's spending, Ted files for divorce. He claims Cindy should reimburse the community for her reckless spending. Would he prevail? Explain.

 

 

Answer rating: 100% (QA)

1 c The supplier will be able to reach the stocks and bonds to satisfy the remaining 20000 debt In many jurisdictions community property laws could potentially allow a creditor to reach community prop... View the full answer