“In dividing the community property estate the law provides it must be divided equally between the spouses, the community assets do not have to be divided in kind, court may award community asset to party to effect equal division, any real community or real quasi-community property in another state must be divided such that it is not necessary to change nature of the interest, court may award from party’s share of community property any amount deliberately misappropriated by spouse to exclusion of other spouse, and disposition of community estate is subject to redivision on appeal.
Tracing process used to prove a separate property claim, 2 methods: Direct tracing is following money trail of commingled asset and tracing to the asset source (to a separate source has traditionally been subject to a requirement that it be done by specific records; mere oral testimony of intent has been held to be inadequate, in light of the general presumption that property acquired during marriage is community). The direct tracing follows the money trail to a separate property source. It is commonly called the Pereira fair rate of return method of recapitalization. Family expense is commonly called the Van Camp method and is used if all of the community income was exhausted when the asset was purchased.
Community estate may be reimbursed for debts paid by a spouse after separation but before trial (this reimbursement is called Epstein credits from In re Marriage of Epstein, now codified in FC 2626); exclusive use of a community asset by one spouse (this charge to a spouse is called Watts charges from In re Marriage of Watts); for contributions made to one spouse’s education because in most cases, educational loans belong to student (FC 2641); for community debts paid after separation but before trial (FC 2626); and for child/spousal support paid during the marriage when the obligation did not arise from the marriage, and separate property contributions made to community property may be reimbursed if [there’s] no written waiver & can be traced to separate property.
Personal injury damages is money paid in satisfaction of judgment for personal injuries (FC 781), are community property if cause of action arose during marriage (FC 780), and damages must be assigned to the party who suffered the injuries unless [the] court determines that the interests of justice require another disposition (FC 781).”
[LW Greenberg, California Family Law]
