Choice of Law for Marital Property

When determining how marital property is classified, personal property is governed by the law of the state where it was acquired, while real property is governed by the location where it is situated. If a couple moves to California, their previously owned property remains classified under the original state law, but California may apply quasi-community property principles during divorce proceedings.

John and Mary acquired a car in Texas before moving to California. The car is considered personal property and remains governed by Texas law, even after their move. However, if they divorce in California, the court may treat the car as quasi-community property, allowing for equitable distribution under California law. Ultimately, the court decides to divide the value of the car equally between them.

Where you buy it matters for personal property, but location rules for real estate!

Exams may confuse students by presenting scenarios where property is moved after acquisition, leading them to incorrectly apply California law to all property. Students must remember that the original acquisition state law governs personal property.

Questions often present fact patterns involving couples moving states and require candidates to identify the applicable law for various types of property during divorce proceedings.