QUESTION ANALYSIS
In 1980, Harry and Wendy, a married couple, (Marital economic community) moved to California from State X where they had resided since their marriage in 1960. Under the laws of State X, a spouse's earnings are his or her separate property.
While married and residing in State X, Harry's accumulated earnings were used to purchase stock in Harry's name only and a residence in Harry's and Wendy's names as joint tenants. The residence was sold in 1980 and the proceeds of the sale were used to buy a California condominium, free and clear of any debt, in Harry's and Wendy's names as joint tenants.
Upon arriving in California, Harry purchased an auto repair business, using funds he had inherited. Each month, Harry withdrew from the proceeds of his repair business an amount equal to what he had been paid in his previous employment as an auto mechanic. He deposited the money in a checking account held jointly with Wendy. The account was used to meet all their monthly living expenses.
In 1982, Wendy was injured in a car accident caused by the negligence of Harry. Wendy used her insurance settlement she received for her injury to purchase savings bonds in her name.
In April 1985, Harry executed a will with a provision declaring the auto repair shop to be community property.
In January 1987, Victor obtained a judgment against Wendy for an injury he suffered when she struck him during a heated argument at a condominium association meeting the prior year. Wendy's attendance at the meeting had been over Harry's strenuous objection.
Which of the following properties will be subject to execution in satisfaction of Victor's judgment against Wendy, and to what extent?
1. The savings bond? Discuss.
2. The stock portfolio? Discuss.
3. The condominium? Discuss.
4. The auto repair business? Discuss.