MBE Rules · Community Property

Personal Injury Damages

Cal. Fam. Code § 780; § 2603

The rule

Money and property received during marriage in satisfaction of a personal-injury cause of action are community property. At dissolution, however, the injured spouse takes the community-property personal-injury damages unless the interests of justice require otherwise.

In plain English

In community property states, any money or property received during marriage as compensation for personal injuries is considered community property. However, if the couple divorces, the injured spouse typically retains those damages unless there are compelling reasons to distribute them differently.

Worked example

During their marriage, Sarah is injured in a car accident and receives a $100,000 settlement for her injuries. When Sarah and John divorce, the court awards Sarah the entire settlement amount, as it is her personal injury compensation and there are no compelling reasons to divide it.

Memory hook

Injured spouse keeps the cash, unless justice demands a splash.

The trap

Students often confuse personal injury damages with other types of compensation that may not be treated as community property, leading to incorrect conclusions about ownership. They might also overlook the 'interests of justice' exception.

How examiners test it

Questions typically present a scenario involving a personal injury settlement during marriage and ask how the damages should be divided upon divorce, testing the candidate's understanding of community property principles.

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