MBE Rules · Community Property
Management and Control of CP
Cal. Fam. Code § 1100(a)-(d)
The rule
Either spouse acting alone may manage and control community personal property, but transfers of community personal property for less than fair value require the written consent of the other spouse. Neither spouse may sell or encumber community real property without the other's consent.
In plain English
In a community property system, both spouses have equal rights to manage and control community personal property. However, if one spouse wants to transfer community personal property for less than its fair value, they need the other spouse's written consent, and neither spouse can sell or encumber community real property without the other's agreement.
Worked example
Hannah decides to sell a family heirloom, a piece of jewelry, for $500, believing it to be a fair price. However, the jewelry is actually worth $2,000, and she did not get her husband’s written consent before the sale. The sale is invalid, and her husband can contest the transaction.
Memory hook
No solo sales of real estate; get your spouse's say-so!
The trap
Exams may present scenarios where one spouse acts without the other's consent, leading students to overlook the necessity of written approval for undervalued personal property transfers.
How examiners test it
Questions often test the nuances of consent requirements in community property transactions, especially focusing on the distinction between personal and real property.
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More Community Property rules
- Interspousal Fiduciary Duty · Cal. Fam. Code § 721; § 1100(e)
- Equal Division at Dissolution · Cal. Fam. Code § 2550
- Putative Spouse Doctrine · Cal. Fam. Code § 2251
- Business Goodwill · Marriage of Foster (goodwill)
- Severance Pay · Severance pay (Cal.)
- Credit Acquisitions · Marriage of Grinius (lender intent)