Question: solve the following pro 1 essay using the given rules only. Save it in IRAC form, for the analysis part= mix rule language + connecting

solve the following pro 1 essay using the given rules only. Save it in IRAC form, for the analysis part= mix rule language + connecting phrase + facts

Winnie is a single woman living in Utopia, a community property state. Winnie enters into a contract to purchase Blueacre on an installment land sale contract. Under the contract, Winnie can live on and use the property, but will not receive the deed to the property until she has made the last payment. She agrees to purchase the property for $100,000. She makes $40,000 in payments, then marries Hank in Utopia. After marriage, she pays the remaining $60,000 from her earnings and receives the deed. The deed is solely in the name of Winnie. Winnie and Hank have two children, Annie and Bill. Winnie dies, devising all of her property to Annie and Bill in equal shares. Blueacre is now worth $200,000 and all parties have agreed to sell the land and split the proceeds based on their ownership interests.

How should the proceeds be divided?

Rules:

  1. Community property states: spouses hold separate property AND community property
    1. Own half of what you bring in
    2. Derived from Europe
    3. Separate Property: property acquired before marriage, by gift, devise, assent during marriage
    4. Community property: property acquired by spouses after there married
      1. Common law Distribution at death
        1. Common law distribution: Separate rules for personal property and real property
          1. On EXAM: assume if question about distribution of prop at death in CL everything is separate property
          2. Everything is separate property, brought in before the marriage and even stuff got during the marriage
            1. Know what personal proeprty means, separate property must be defined (Personal property and separate property are not the same thing)
            2. Personal property: Things that arent land (can be held as separate property or as community property)
            3. Includes dower and curtesy for real estate
            4. Common law distribition of personal property
              1. If husband dies: W-takes of H's PP if surviving issue; if none (the other half goes to next in line heirs)
              2. If wife dies: H- takes all of W's personal property regardless of issue
            5. Common law distribution of real property
              1. Dower (Wife gets this)
                1. W gets LE in of each parcel in which H was seised during marriage and which was inheritable by issue
                2. Wife is only able to get things that are inheritable by issue
                3. Whats not inheritable: Joint tenancy, LE
                  1. Attaches at moment of marriage
                  2. creditors/purchasers take subject to W dower right (Unless right signed away)
                  3. Even if H tries to sell the land he cant do so without W signing away her dower right (W will always have a right to LE so long as she doesnt sign away her right)
                4. Even under primogeniture, W has right of H LE even after eldest sone inherits
            6. Curtesy (Husband gets this)
              1. H gets LE in all of W's land, but only if H and W had issue born alive. Attached to all freehold land that wife was seised during marriage and taht was inheritable by issue
          3. Modern distribution: elective forced share
            1. Elective Forced Share
              1. Spouses can take a share (Usually or ) of all real and personal property that decedent-spouse owned at death
                1. If its in the estate its subject to the elective forced share
              2. Spouse does not have to take forced share but can elect to take through the will, if available

  1. Community property
    1. Community property (CP): earnings during marriage and the rents, profits and fruits of earnings (Except gift, or devise, inherited)
    2. Separate property(SP): Property that is not CP; includes: property acquired before marriage and property acquired during marriage by gift devise or descent
      1. Community property basics
        1. Spouses own CP in equal shares; SPbelongs 100%to the spouse who acquired it
        2. Property acquired during marriage is presumed CPalthough presumption is rebuttable
        3. Spouses can transmute (Change) the character of property by agreement from CO to SP or from SP to CP
          1. Must do so by agreement
        4. Dispostitin of CP at death
          1. Testate: Each spouse has the power to dispose of his or her own share of CP and all of his or her own SP by will
            1. If you have a will dont have to give it to your spouse you can devise it to another
          2. intestate: Decendent spouses share of CP and all of decedent spouses SP passes to his or her heirs
          3. CP or SP can be devised to whoever they want
          4. If H dies intestate: Spouses and issue inherit half of H property ( W would get of H and Issue would get of H) wife would get her full half plus husbands half and issue would get of H
          5. CP traditionally cannot be held at JT or Tenancy by the entirety (Cp cant have right of surviorsship unless there is a statutory exception mentioned)
            1. JT: Right of survivorship CP: does NOT have right of surviorshipso they are opposite
        5. Management
          1. Spouses have equal management power over CP. SP is managed by the spouse who owns it
          2. Spouses have fiduciary obligations and must act in good faith
        6. Mixed property
          1. Characteriszing property made up of both CP and SP depends on the jurisdiction
            1. (texas)Inception of right: Character of the property(SP or CP) is determined at the time the property is acquired; community is entitled to reimbursement of CP

  1. Time of vesting: character of property is determined at the time when title vests; recipient of SP is entitled to reimbursement of SP
    1. Title vests when you are married
      1. Pro Rata sharing: community payments "Buy in" a pro-rata share of title
        1. Partly considered CP and parly SP
        2. Inception of right steps
          1. H paid 30k when single: How is it characterized?
            1. SP because the right was acquired while single
          2. H paid 70k when married:
          3. House worth now is 200k.
        3. Time of vesting
          1. Charaztize based on time it was acquired
          2. Title comes whent hey are married
        4. Migrating couples
          1. Character of property is determined by the spouses domicile when acquired
            1. Character: SP or CP
            2. If in common law state: Always SP
            3. If in community property state: Figure out if CP or SP
            4. Characterized at the time they BUY it not when they died
          2. Once characterized the character of property does not change unless both parties consent
          3. Distributing property at death:
            1. Personal property: Law of the decendents domicile at death governs the dispostion of personal proeprty at death
            2. Real property: Law, where the land is located, governs the disposition of real property

THX

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