WEST'S ANNOTATED FAMILY CODE OF CALIFORNIA part 2

¤ 125.  Quasi-community property

"Quasi-community property" means all real or personal property, wherever situated,
acquired before or after the operative date of this code in any of the following
ways:

(a)	By either spouse while domiciled elsewhere which would have been community
property if the spouse who acquired the property had been domiciled in this state
at the time of its acquisition.

(b)	In exchange for real,or personal property, wherever situated, which would
have been community property if the spouse who acquired the property so exchanged
had been domiciled in this state at the time of its acquisition.

(Stats.1992, c. 162 (A.B.2650), ¤ 10, operative Jan. 1, 1994.)

WEST'S ANNOTATED PROBATE CODE OF CALIFORNIA ¤ 66.  Quasi-community Property

As used in this code, "quasi-community property" means the following property,
other than community property as defined in Section 28:

(a)	All personal property wherever situated, and all real property situated in
this state, heretofore or hereafter acquired by a decedent while domiciled
elsewhere that would have been the community property of the decedent and the
surviving spouse if the decedent had been domiciled in this state at the time of
its acquisition.

(b)	All personal property wherever situated, and all real property situated in
this state, heretofore or hereafter acquired in exchange for real or personal
property, wherever situated, that would have been the community property of the
decedent and the surviving spouse if the decedent had been domiciled in this state
at the time the property so exchanged was acquired. (Added by Stats.1983, c. 842, ¤
21.)



¤ 101.  Quasi-community Property Upon the death of a married person domiciled in
this state, one-half of the decedent's quasi-community property belongs to the
surviving spouse and the other half belongs to the decedent.

(Added by Stats.1983, c. 842, ¤ 22.)

B. The Supremacy Clause

Another constitutional limitation upon the operation of the California community
property system involves the supremacy clause of the United States constitution and
the doctrine of federal preemption.  Under this doctrine, state laws must yield to
any conflicting federal law when Congress, in the proper exercise of a
constitutionally granted source of power, has expressly or impliedly sought federal
supremacy.   One of the major issues that has arisen in connection with state
marital property laws is whether various types of federally created benefits, such
as retirement benefits, life insurance, and social security benefits, are precluded
from classification and division as community property by virtue of federal
preemption.  Related issues, including jurisdictional questions, are seen in the
bankruptcy cases."

With the exception of social security benefits," California courts have generally
been reluctant to declare federal preemption of state community property laws, and
even when preemption was mandated, the state courts tended to mitigate its
effects."

SECTION 1. COMMINGLED FUNDS

"Commingling" refers to the combining or intermixing of community and separate
funds into a common mass or pool.  The most frequent example involves the deposit
of both community and separate funds in a single bank account during marriage.  If
the deposits are made at one time, and no withdrawals are made, and records are
kept of the nature of the deposits, the classification process is relatively
simple.  The account can be viewed as an acquisition during marriage, and within
the general presumption of community property.  The spouse seeking to establish the
separate character of a portion of the funds may rebut the general presumption by
directly tracing that portion of the funds to a, separate property source.

Where there are deposits and withdrawals over a period of time, and the commingled
funds are used to purchase other assets, the problem of classifying the ownership
interests in such property becomes more complicated.  The controlling principles,
however, remain the same.

1.	For a discussion of this general prob- creases in Separate Property and the
Evolvlem area in both community property and ing Marital Partnership, 24 Wake
Forest common law contexts, see Reynolds, In- L.R. 239 (1989)The property comes
within the general presumption of community property, but it may be possible to
rebut this presumption by directly tracing the asset to a separate property source.
 If direct evidence is lacking, as it may well be if the spouses have not kept
accurate records of the nature of every deposit and withdrawal, a more indirect
type of tracing may be used.  This method of indirect tracing is aided by the
judicial presumption that family expenses are paid from the community funds.  If it
can be established that at the time of the disputed acquisition, the community
funds in the account had been exhausted by community expenses, then the balance in
the account at the time the property was purchased was necessarily separate.  Any
item purchased with the remaining funds would then be deemed separate property.

Where it is impossible to trace either directly or indirectly the separate and
community contributions to the commingled fund or assets purchased with commingled
funds, the general presumption of community property controls.  And even if the
respective amounts of the community and separate contributions can be established,
if the amount of the community property contribution is insignificant, the court
may disregard it.

Pereira/Van Camp Two approaches have ordinarily been made to the allocation of
earnings in such cases: 1. to allow interest on the capital investment of the
business, allocate such interest as separate property, and treat the balance as
community earnings attributable to the efforts of the husband (Pereira v. Pereira,
156 Cal. 1, 103 P. 488, 23 L.R.A., N.S., 880); 2. to determine the reasonable value
of the husband's services in the business, allocate that amount as community
property, and treat the balance as separate property attributable to the normal
earnings of the business.   Huber v. Huber, 27 Cal.2d 784, 167 P.2d 708.  The court
adopted the latter formula.

¤ 780.  Community property

Except as provided in Section 781 and subject to the rules of allocation set forth
in Section 2603, money and other property received or to be received by a married
person in satisfaction of a judgment for damages for personal injuries, or pursuant
to an agreement for the settlement or compromise of a claim for such damages, is
community property if the cause of action for the damages arose during the
marriage. (Stats.1992, c. 162 (A.B. 2650), ¤ 10, operative Jan. 1, 1994.)

¤ 781.  Separate property

(a)	Money or other property received or to be received by a married person in
satisfaction of a judgment for damages for personal injuries, or pursuant to an
agreement for the settlement or compromise of a claim for those damages, is the
separate property of the injured person if the cause of action for the damages
arose as follows:

(1)	After the entry of a judgment of dissolution of a marriage or legal
separation of the parties.

(2)	While either spouse, if he or she is the injured person, is living separate
from the other spouse.

(b)	Notwithstanding subdivision (a), if the spouse of the injured person has
paid expenses by reason of the personal injuries from separate property or from the
community property, the spouse is entitled to reimbursement of the separate
property or the community property for those expenses from the separate property
received by the injured person under subdivision (a).

(c)	Notwithstanding subdivision (a), it one spouse has a cause of action against
the other spouse which arose during the marriage of the parties, money or property
paid or to be paid by or on behalf of a party to the party's spouse of that
marriage in satisfaction of a judgment for damages for personal injuries to that
spouse, or pursuant to an agreement for the settlement or compromise of a claim for
the damages, is the separate property of the injured spouse. (Stats.1992, c. 162
(A.B. 2650), ¤ 10, operative Jan. 1, 1994.)

¤ 782.  Injuries to married person by spouse; primary resort to separate property;
consent of injured spouse to use of community property; indemnity

(a)	Where an injury to a married person is caused in whole or in part by the
negligent or wrongful act or omission of the person's spouse, the community
property may not be used to discharge the liability of the tortfeasor spouse to the
injured spouse or the liability to make contribution to a joint tortfeasor until
the separate property of the tortfeasor spouse, not exempt from enforcement of a
money judgment, is exhausted.

(b)	This section does not prevent the use of community property to discharge a
liability referred to in subdivision (a) if the injured spouse gives written
consent thereto after the occurrence of the injury.

(c)	This section does not affect the right to indemnity provided by an insurance
or other contract to discharge the tortfeasor spouse's liability, whether or not
the consideration given for the contract consisted of community property.
(Stats.1992, c. 162 (A,B. 2650), ¤ 10, operative Jan. 1, 1994.)

¤ 783.  Iniuries to married person by third party; extent concurring negligence of
spouse allowable as defense or wrongful act or omission of a 	if a married
person is injured by the negligent the fact that the negligent or person other than
the married person's spouse, wrongful act or omission of the spouse of the injured
person was a concurring of the injury is not a defense in an action brought by the
injured person to cause

recover damages for the injury except in cases where the concurring negligent or
wrongful act or omission would be a defense if the marriage did not exist.

(Stats.1992, c. 162 (A.B. 2650), ¤ 10, operative Jan. 1, 1994.)

¤ 2603.  Community estate personal injury damages; assignment

(a)	"Community estate personal injury damages" as used in this section means all
money or other property received or to be received by a person in satisfaction of a
judgment for damages for the person's personal injuries or pursuant to an agreement
for the settlement or compromise of a claim for the damages, if the cause of action
for the damages arose during the marriage but is not separate property as described
in Section 781, unless the money or other property has been commingled with other
assets of the community estate.

(b)	Community estate personal injury damages shall be assigned to the party who
suffered the injuries unless the court, after taking into account the economic
condition and needs of each party, the time that has elapsed since the recovery of
the damages or the accrual of the cause of action, and all other facts of the case,
determines that the interests of justice require another disposition.  In such a
case, the community estate personal injury damages shall be assigned to the
respective parties in such proportions as the court determines to be just, except
that at least one-half of the damages shall be assigned to the party who suffered
the injuries. (Stats.1992, c. 162 (A.B. 2650), ¤ 10, operative Jan. 1, 1994.)


¤ 2610.  Retirement plans; orders to assure benefits

* * * (a) Except as provided in subdivision (b), the court shall make whatever
orders are necessary or appropriate to ensure that each party receives the party's
full community property share in any retirement plan, whether public or private,
including all survivor and death benefits, including, but not limited to, any of
the following:

(1)	Order the division of any retirement benefits payable upon or after the
death of either party in a manner consistent with this division.

(2)	Order a party to elect a survivor benefit annuity or other similar election
for the benefit of the other party, as specified by the court, in any case in which
a retirement plan provides for such an election, provided that no court shall order
a retirement plan to provide increased benefits determined on the basis of
actuarial value.

(3)	Order the division of accumulated community property contributions and
service credit as provided in Article 1.2 (commencing with Section 21215) of
Chapter 9 of Part	3 of Division 5 of Title 2 of, or Article 2.5 (commencing with
Section 75050) of	Chapter 11 of Title 8 of, the Government Code.

(4) Order the	division of community property rights in accounts with the State
Teachers' Retirement System pursuant to Chapter 7.5 (commencing with Section 22650)
of Part 13 of the Education Code.

	(5)	Order a retirement plan to make payments directly to a nonmember party
of his or her community property interest in retirement benefits.

(b)	A court shall not make any order that requires a retirement plan to do
either of the following:

(1)	Make payments in any manner that will result in an increase in the amount of
benefits provided by the plan.

(2)	Make the payment of benefits to any party at any time before the member
retires, except as provided in paragraphs (3) and (4) of subdivision (a), unless
the plan so provides.

(c)	This section shall not be applied retroactively to payments made by a
retirement plan to any person who retired or died prior to January 1, 1987, or to
payments made to any person who retired or died prior to June 1, 1988, for plans
subject to paragraphs (3) and (4) of subdivision (a).

Stats.1993, c. 219, ¤ 112.

¤ 721.  Contracts with each other and third parties; fiduciary relationship

(a)	Subject to subdivision (b), either husband or wife may enter into any
transaction with the other, or with any other person, respecting property, which
either might if unmarried.

(b)	Except as provided in Sections 143, 144, 146, and 16040 of the Probate Code,
in transactions between themselves, a husband and wife are subject to the general
rules governing fiduciary relationships which control the actions of persons
occupying confidential relations with each other.  This confidential relationship
imposes a duty of the highest good faith and fair dealing on each spouse, and
neither shall take any unfair advantage of the other.  This confidential
relationship is a fiduciary relationship subject to the same rights and duties of
nonmarital business partners, as provided in Sections 15019, 15020, 15021, and
15022 of the Corporation Code, including the following:

(1)	Providing each spouse access at all times to any books kept regarding a
transaction for the purposes of inspection and copying.

(2)	Renderind upon request, true and full information of all things affecting
any transaction which concerns the community property.  Nothing in this section is
intended to impose a duty for either spouse to keep detailed books and records of
community property transactions.

(3)	Accounting to the spouse, and holding as a trust any benefit or profit
derived from any transaction by one spouse without the consent of the other spouse
which concerns the community property.

(Stats.1992, c. 162 (A.B.2650), ¤ 10, operative Jan. 1, 1994.)

¤ 1100.  Community personal property; management and control; restrictions on
disposition

(a)	Except as provided in subdivisions (b), (c), and (d) and Sections 761 and
1103, either spouse has the management and control of the community personal
property, whether acquired prior to or on or after January 1, 1975, with like
absolute power of disposition, other than testamentary, as the spouse has of the
separate estate of the spouse.

(b)	A spouse may not make a gift of community personal property, or dispose ,of
community personal property for less than fair and reasonable value, without the
written consent of the other spouse.  This subdivision does not apply to gifts
mutually given by both spouses to third parties and to gifts given by one spouse to
the other spouse.

(c)	A spouse may not sell, convey, or encumber community personal property used
as the family dwelling, or the furniture, furnishings, or fittings of the home, or
the clothing or wearing apparel of the other spouse or minor children which is
community personal property, without the written consent of the other spouse.

(d)	Except as provided in subdivisions (b) and (c), and in Section 1102, a
spouse who is operating or managing a business or an interest in a business that is
all or substantially all community personal property has the primary management and
control of the business or interest.  Primary management and control

means that the managing spouse may act alone in all transactions but shall give
prior written notice to the other spouse of any sale, lease, exchange, encumbrance,
or other disposition of all or substantially all of the personal property used in
the operation of the business (including personal property used for agricultural
purposes), whether or not title to that property is held in the name of only one
spouse.  Written notice is not, however, required when prohibited by the law
otherwise applicable to the transaction.

Remedies for the failure by a managing spouse to give prior written notice as
required by this subdivision are only as specified in Section 1 1 01.  A failure to
give prior written notice shall not adversely affect the validity of a transaction
nor of any interest transferred.

(e)	Each spouse shall act with respect to the other spouse in the management and
control of the community assets and liabilities in accordance with the general
rules governing fiduciary relationships which control the actions of persons having
relationships of personal confidence as specified in Section 721, until such time
as the assets and liabilities have been divided by the parties or by a court.  This
duty includes the obligation to make full disclosure to the other spouse of all
material facts and information regarding the existence, characterization, and
valuation of all assets in which the community has or may have an interest and
debts for which the community is or may be liable, and to provide equal access to
all information, records, and books that pertain to the value and character of
those assets and debts, upon request. (Stats.1993, c. 219, ¤ 100.8, operative Jan.
1, 1994.)

¤ 1101.  Claim for breach of fiduciary duty; court ordered accounting; addition of
name of spouse to community property; limitation of action; consent of spouse not
required; remedies

(a)	A spouse has a claim against the other spouse for a breach of the fiduciary
duty imposed by Section 1 1 00 or 1 1 02 that results in impairment to the claimant
spouse's present undivided one-half interest in the community estate, including,
but not limited to, a single transaction or a pattern or series of transactions,
which transaction or transactions have caused or will cause a detrimental impact to
the claimant spouse's undivided one-half interest in the community estate.

(b)	A court may order an accounting of the property and obligations of the
parties to a marriage and may determine the rights of ownership in, the beneficial
enjoyment of, or access to, community property, and the classification of all
property	of the parties to a marriage.

(c)	A court may order that the name of a spouse shall be added to community
property	held in the name of the other spouse alone or that the title of
community property held in some other title form shall be reformed to reflect its
community character, except with respect to any of the following:

(1)	A partnership interest held by the other spouse as a general partner.

(2)	An interest in a professional corporation or professional association.

(3)	An asset of an unincorporated business if the other spouse is the only
spouse involved in operating and managing the business.

(4)	Any other property, if the revision would adversely affect the rights of a
third person.

	(d)(1) Except as provided in paragraph (2), any action under subdivision (a)
shall be commenced within three years of the date a petitioning spouse had actual
knowledge that the transaction or event for which the remedy is being sought
occurred. (2)	An action may be commenced under this section upon the death of a
spouse or in conjunction with an action for legal separation, dissolution of
marriage, or nullity without regard to the time limitations set forth in paragraph
(1).

(3)	The defense of laches may be raised in any action brought under this
section. (4)	Except as to actions authorized by paragraph (2), remedies under
subdivi	sion (a)	apply only to transactions or events occurring on or after
July 1, 1987. (e)	In any transaction affecting community property in which the
consent of both spouses is required, the court may, upon the motion of a spouse,
dispense with the requirement of the other spouse's consent if both of the
following requirements are met: (1)	The proposed transaction is in the best
interest of the community.

(2)	Consent has been arbitrarily refused or cannot be obtained due to the
physical incapacity, mental incapacity, or prolonged absence of the nonconsenting
spouse. (f)	Any action may be brought under this section without filing an
action for dissolution of marriage, legal separation, or nullity, or may be brought
in conjunction with the action or upon the death of a spouse.

(g)	Remedies for breach of the fiduciary duty by one spouse as set out in
Section 721 shall include, but not be limited to, an award to the other spouse of
50 percent, or an amount equal to 50 percent, of any asset undisclosed or
transferred in breach of the fiduciary duty plus attorney's fees and court costs. 
However, in no event shall interest be assessed on the managing spouse.

(h)	Remedies for the breach of the fiduciary duty by one spouse when the breach
falls within the ambit of Section 3294 of the Civil Code shall include, but not be
limited to, an award to the other spouse of 100 percent, or an amount equal to 100
percent, of any asset undisclosed or transferred in breach of the fiduciary duty.

(Stats.1992, c. 162 (A.B.2650), ¤ 10, operative Jan. 1, 1994.)

¤ 1102.  Community real property; spouse's joinder in conveyances; application of
section; limitation of actions

(a)	Except as provided in Sections 761 and 1103, either spouse has the
management and control of the community real property, whether acquired prior to or
on or after January 1, 1975, but both spouses, either personally or by a duly
authorized agent, must join in executing any instrument by which that community
real property or any interest therein is leased for a longer period than one year,
or is sold, conveyed, or encumbered.

(b)	Nothing in this section shall be construed to apply to a lease, mortgage,
conveyance, or transfer of real property or of any interest in real property
between husband and wife. (c)	Notwithstanding subdivision (b): (1)	The sole
lease, contract, mortgage, or deed of the husband, holding the record title to
community real property, to a lessee, purchaser, or encumbrancer, in good faith
without knowledge of the marriage relation, shall be presumed to be valid if
executed prior to January 1, 1975. (2)	The sole lease, contract, mortgage, or
deed of either spouse, holding the record title to community real property to a
lessee, purchaser, or encumbrancer, in good faith without knowledge of the marriage
relation, shall be presumed to be valid it executed on or after January 1, 1975.
(d)	No action to avoid any instrument mentioned in this section, affecting any
property standing of record in the name of either spouse alone, executed by the
spouse alone, shall be commenced after the expiration of one year from the filing
for record of that instrument in the recorder's office in the county in which the
land is situated. (e)	Nothing in this section precludes either spouse from
encumbering his or her interest in community real property, as provided in Section
2033, to pay reasonable attorney's fees in order to retain or maintain legal
counsel in a proceeding for dissolution of marriage, for nullity of marriage, or
for legal separa-

tion of the parties. (Stats.1993, c. 219, ¤ 101, operative Jan. 1, 1994.)

¤ 1103.  Management and control of community property; one or both spouses having
conservator of estate or lacking legal capacity; law

governing (a)	Where one or both of the spouses either has a conservator of the
estate or lacks legal capacity to manage and control community property, the
procedure for management and control (which includes disposition) of the community
property is that prescribed in Part 6 (commencing with Section 3000) of Division 4
of the

Probate Code. lb) Where one or both spouses either has a conservator of the estate
or lacks legal capacity to give consent to a gift of community personal property or
a disposition of community personal property without a valuable consideration as
required by Section 1 1 00 or to a sale, conveyance, or encumbrance of community
personal property for which a consent is required by Section 1 1 00, the procedure
for that gift, disposition, sale, conveyance, or encumbrance is that prescribed in
Part 6 (commencing with Section 3000) of Division 4 of the Probate Code.

(c)	Where one or both spouses either has a conservator of the estate or lacks
legal capacity to join in executing a lease, sale, conveyance, or encumbrance of
community real property or any interest therein as required by Section 1102, the
procedure for that lease, sale, conveyance, or encumbrance is that prescribed in
Part 6 (commencing with Section 3000) of Division 4 of the Probate Code.
(Stats.1992, c. 162 (A.B.2650), ¤ 10, operative Jan. 1, 1994.)

¤ 900.  Construction of part

Unless the provision or context otherwise requires, the definitions in this chapter
govern the construction of this part.

(Stats.1992, c. 162 (A.B.2650), ¤ 10, operative Jan. 1, 1994.)

¤ 902.  Debt "Debt" means an obligation incurred by a married person before or
during marriage, whether based on contract, tort, or otherwise.

(Stats.1992, c. 162 (A.B.2650), ¤ 10, operative Jan. 1, 1994.)

¤ 903.  Time debt is incurred

A debt is "incurred" at the following time: (a)	In the case of a contract, at
the time the contract is made.

(b)	In the case of a tort, at the time the tort occurs.

(c)	In other cases, at the time the obligation arises.

(Stats.1992, c. 162 (A.B.2650), ¤ 10, operative Jan. 1, 1994.)

¤ 910.  Community estate; liability for debts

(a)	Except as otherwise expressly provided by statute, the community estate is
liable for a debt incurred by either spouse before or during marriage, regardless
of which spouse has the management and control of the property and regardless of
whether one or both spouses are parties to the debt or to a judgment for the debt.

	(b)	"During marriage" for purposes of this section does not include the
period during which the spouses are living separate and apart before a judgment of
dissolution of marriage or legal separation of the parties.

(Stats.1992, c. 162 (A.B.2650), ¤ 10, operative Jan. 1, 1994.)

¤ 911.  Earnings of married persons; liability for premarital debts; earnings held
in deposit accounts

(a)	The earnings of a married person during marriage are not liable for a debt
incurred by the person's spouse before marriage.  After the earnings of the married
person are paid, they remain not liable so long as they are held in a deposit
account in which the person's spouse has no right of withdrawal and are
uncommingled with other property in the community estate, except property
insignificant in amount. (b)	As used in this section: (1)	"Deposit account"
has the meaning prescribed in Section 9105 of the Commercial Code.
(2)	"Earnings" means compensation for personal services performed, whether as an
employee or otherwise.

(Stats.1992, c. 162 (A.B.2650), ¤ 10, operative Jan. 1, 1994.)

¤ 912.  Quasi-community property; treatment

For the purposes of this part, quasi-community property is liable to the same
extent, and shall be treated the same in all other respects, as community property.

(Stats.1992, c. 162 (A.B.2650), ¤ 10, operative Jan. 1, 1994.)

¤ 913.  Separate property of married person; liability for debt of spouse

(a)	The separate property of a married person is liable for a debt incurred by
the person before or during marriage.

(b)	Except as otherwise provided by statute:

(1)	The separate property of a married person is not liable for a debt incurred
by the person's spouse before or during marriage.

(2)	The joinder or consent of a married person to an encumbrance of community
estate property to secure payment of a debt incurred by the person's spouse does
not subject the person's separate property to liability for the debt unless the
person also incurred the debt.

(Stats.1992, c. 162 (A.B.2650), ¤ 10, operative Jan. 1, 1994.)

¤ 914.  Personal liability for debts incurred by spouse; separate property applied
to satisfaction of debt

(a)	Notwithstanding Section 913, a married person is personally liable for the
following debts incurred by the person's spouse during marriage:

(1)	A debt incurred for necessaries of life of the person's spouse while the
spouses are living together.

(2)	Except as provided in Section 4302, a debt incurred for common necessaries
of life of the person's spouse while the spouses are living separately.

	(b)	The separate property of a married person may be applied to the
satisfaction of a debt for which the person is personally liable pursuant to this
section.  If separate property is so applied at a time when nonexempt property in
the community estate or separate property of the person's spouse is available but
is not applied to the satisfaction of the debt, the married person is entitled to
reimbursement to the extent such property was available. (Stats.1993, c. 219, ¤
100.4, operative Jan. 1, 1994.)

¤ 915.  Child or spousal support obligation not arising out of marriage;
reimbursement of community (a)	For the purpose of this part, a child or spousal
support obligation of a married 	person that does not arise out of the marriage
shall be treated as a debt incurred before marriage, regardless of whether a court
order for support is made or modified before or during marriage and regardless of
whether any installment payment on the obligation accrues before or during
marriage.

(b)	If property in the community estate is applied to the satisfaction of a
child or spousal support obligation of a married person that does not arise out of
the marriage, at a time when nonexempt separate income of the person is available
but is not applied to the satisfaction of the obligation, the community estate is
entitled to reimbursement from the person in the amount of the separate income, not
exceeding the property in the community estate so applied.

(c)	Nothing in this section limits the matters a court may take into
consideration in determining or modifying the amount of a support order, including,
but not limited to, the earnings of the spouses of the parties. (Stats.1993, c.
219, ¤ 100.5, operative Jan. 1, 1994.)

¤ 916.  Division of property; subsequent liability, right of reimbursement;
interest and attorney's fees (a)	Notwithstanding any other provision of this
chapter, after division of community and quasi-community property pursuant to
Division 7 (commencing with Section 2500):

(1)	The separate property owned by a married person at the time of the division
and the property received by the person in the division is liable for a debt
incurred by the person before or during marriage and the person is personally
liable for the debt, whether or not the debt was assigned for payment by the
person's	 spouse in the division. (2)	The separate property owned by a
married person at the time of the division	and the property received by the
person in the division is not liable for a debt incurred by the person's spouse
before or during marriage, and the person is not personally liable for the debt,
unless the debt was assigned for payment by the person in the division of the
property.  Nothing in this paragraph affects the liability of property for the
satisfaction of a lien on the property.

(3)	The separate property owned by a married person at the time of the division
and the property received by the person in the division is liable for a debt
incurred by the person's spouse before or during marriage, and the person is
personally liable for the debt, if the debt was assigned for payment by the person
in the division of the property.  If a money judgment for the debt is entered after
the division, the property is not subject to enforcement of the judgment and the
judgment may not be enforced against the married person, unless the person is made
a party to the judgment for the purpose of this paragraph.

	(b)	If property of a married person is applied to the satisfaction of a
money judgment pursuant to subdivision (a) for a debt incurred by the person that
is assigned for payment by the person's spouse, the person has a right of
reimbursement from the person's spouse to the extent of the property applied, with
interest at the legal rate, and may recover reasonable aftorney's fees incurred in
enforcing the right of reimbursement. (Stats.1992, c. 162 (A.B. 2650), ¤ 10,
operative Jan. 1, 1994.)

¤ 920.  Conditions governing right of reimbursement

A right of reimbursement provided by this part is subject to the following
provisions:

(a)	The right arises regardless of which spouse applies the property to the
satisfaction of the debt, regardless of whether the property is applied to the
satisfaction of the debt voluntarily or involuntarily, and regardless of whether
the debt to which the property is applied is satisfied in whole or in part.  The
right is subject to an express written waiver of the right by the spouse in whose
favor the right arises.

(b)	The measure of reimbursement is the value of the property or interest in
property at the time the right arises.

(c)	The right shall be exercised not later than the earlier of the following
times:

(1)	Within three years after the spouse in whose favor the right arises has
actual knowledge of the application of the property to the satisfaction of the
debt.

(2)	In proceedings for division of community and quasi-community property
pursuant to Division 7 (commencing with Section 2500) or in proceedings upon the
death of a spouse.

(Stats.1992, c. 162 (A.B. 2650), ¤ 10, operative Jan. 1, 1994.)

¤ 930.  Liability for debts enforced on or after Jan. 1, 1985

Except as otherwise provided by statute, this part governs the liability of
separate property and property in the community estate and the personal liability
of a married person for a debt enforced on or after January 1, 1985, regardless of
whether the debt was incurred before, on, or after that date.

(Stats.1993, c. 219, ¤ 100.6, operative Jan. 1, 1994@)

¤ 1000.  Liability for injury or damage caused by spouse; property subject to
satisfaction of liability; satisfaction out of insurance proceeds; limitation on
exercise of reimbursement right

(a)	A married person is not liable for any injury or damage caused by the other
spouse except in cases where the married person would be liable therefor if the
marriage did not exist.

(b)	The liability of a married person for death or injury to person or property
shall be	satisfied as follows:

(1)	If the liability of the married person is based upon an act or omission
which occurred while the married person was performing an activity for the benefit
of the community, the liability shall first be satisfied from the community.estate
* and second from the separate property of the married person.

(2)	If the liability of the married person is not based upon an act or omission
which occurred while the married person was performing an activity for the benefit

of the community, the liability shall first be satisfied from the separate
property of the married person and second from the community estate.

(c)	This section does not apply to the extent the liability is satisfied out of
proceeds of insurance for the liability, whether the proceeds are from property in
the community estate or from separate property.  Notwithstanding Section 920, no
right of reimbursement under this section shall be exercised more than seven years
after the spouse in whose favor the right arises has actual knowledge of the
application of the property to the satisfaction of the debt. (Stats.1993, c. 219, ¤
100.7, operative Jan. 1, 1994.)