COMMUNITY PROPERTY FINAL EXAM

SUMMER 2001 - Prof. Helen Chang

INSTRUCTIONS:

1. This exam is closed book. No materials of any kind are allowed. You may not use notes, books, outlines, papers, statutes, or calculators.

2. You have 2 hours and 15 minutes to complete this exam.

3. This exam consists of 2 - one hour essay questions each worth 50 points and 1 - 15 minute bonus question worth 5 points. The time for each question is suggested only. You may allocate your time as you wish.

4. All events take place in California unless otherwise stated.

5. Your answer should demonstrate your understanding of California community property law as applied to the facts presented.

6. Good luck and enjoy the rest of the summer!

Community Property Final Exam - Question One (50 points) - Summer 2001

All events take place in California unless otherwise stated.

When Harry met Sally he was already legally married to Wanda. Harry told Sally that Wanda had been lost at sea while sailing. In fact, Wanda was alive and well in Hawaii. Harry and Sally got "married" in 1982. Later that year, they purchased a house in San Francisco, taking title as "Harry and Sally, a married couple as joint tenants with right of survivorship." Sally used $50,000 from her inheritance as the down payment on the $250,000 purchase price. When they signed the final papers for the house, Sally told Harry, "Are you sure that my inheritance will always be mine?" Harry told Sally not to worry since he would "never take what was hers alone." Harry made all mortgage payments from a business he had started with Wanda in 1980 called, "Hawaiian Getaways."

In 1985, Sally sold a painting she had created in 1980 for $10,000. Sally used the monies to buy stock in her own name. She did not tell Harry about the stock. In 1986, Sally sold the stock for a net gain of $20,000. She used the proceeds to buy a condo in Hawaii for $100,000. Title to the condo was taken as, "Tenants in common, Harry 10 percent and Sally 90 percent."

In 1990, Elaine a former employee of Hawaiian Getaways, sued Harry for sexual harassment. Elaine obtained a judgment against Harry for $50,000 in 1992. To assuage his guilt, Harry bought Sally a new Porsche for her birthday. Harry signed the card, "You deserve the car and more for putting up with me. For yours to keep forever." Unbeknownst to Sally, title to the car was in Harry's name only. Harry paid for the insurance premiums on the car from his Hawaiian Getaways' salary of $100,000.

In 1993, Sally crashed the Porsche while racing in a road rally. She used the insurance proceeds of $100,000 to buy a helicopter in her name only. Harry was unaware that Sally had purchased the helicopter. Sally became more adventurous and began travelling internationally to remote areas. While Sally was on an expedition to climb Mount Everest, Harry filed for dissolution in California. Wanda also files for dissolution against Harry in California.

How should the court divide the following property:
(1) The San Francisco house;
(2) Hawaiian Getaways;
(3) The Hawaii condo; and,
(4) The helicopter.

What property can Elaine reach to satisfy her judgment?

 

 

 

 

Ally became instantly famous after winning a gold medal in ice skating in the 1972 winter Olympics. After her knee surgery in 1973, Ally married her orthopedic surgeon Herman in Boston. Ally and Herman purchased a home in Boston with title in Herman's name only. In 1974, they moved to California.

In 1974, Ally and Herman purchase a home in Manhattan Beach for $1 million. They take title as "Ally and Herman, as equal tenants in common." Ally contributes $100,000 from her ice skating endorsements towards the down payment. Herman also contributes $100,000 from his savings towards the down payment.

For Ally's birthday that year, Herman gives her a $25,000 diamond necklace from Tiffany's. In 1975, Ally and Herman adopt a baby girl Gisele. Herman buys a $5 million life insurance policy naming his mother and Gisele as the beneficiaries.

By 1980, Herman's medical practice is flourishing. When he inherits $10 million from his grandmother, Herman decides to retire. Herman uses part of his inheritance to buy a condo in Vail, Colorado for $500,000 with title in his name only. The balance of Herman's inheritance is invested in stocks and mutual funds.

While helicopter skiing in 1982, Herman decides to "live" in Vail with Bea. Herman writes a bestseller titled, "Skiing with the Rich and Famous" and collects royalties from the book. With the book royalties, Herman buys a ski resort in Telluride with title in his own name. Angry with Herman for his long absences in Vail, Ally and Gisele move to San Francisco in 1984.

Ally's skating career resurges after her performance in the Ice Capades in 1984. She buys a house in Belvedere for $2 million with title in her name only. When the National Intruder publishes unauthorized photos of Ally sunbathing topless, Ally sues the magazine. The lawsuit is finally settled for $100,000. Ally invests all of the money in technology stocks in her name only.

While skiing in Australia, Herman meets and "marries" Carrie. On their wedding night, Herman suffers a fatal heart attack in the hot tub and dies intestate. How should his estate be distributed?

Community Property Final Exam - Bonus Question (5 points)- Summer 2001

Who were the Visigoths?