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Question 1
Jason and Jumana Kidd are husband and wife who live in New Jersey. Jason makes $10,000,000 in one season playing basketball. Who owns that money?
Correct New Jersey is not a community property state. Under the common law, money earned by one spouse belongs to the spouse that earned the money.
Incorrect! New Jersey is not a community property state. Under the common law, money earned by one spouse belongs to the spouse that earned the money.
Correct
Incorrect!
Question 2
Jason and Jumana Kidd are husband and wife who live in Texas. Jason makes $10,000,000 in one season playing basketball. Who owns that money?
Correct
Incorrect!
Correct Texas is a community property state. The "community property" rule dictates that all property acquired by one spouse during the marriage inherently belongs equally to both spouses.
Incorrect! Texas is a community property state. The "community property" rule dictates that all property acquired by one spouse during the marriage inherently belongs equally to both spouses.
Question 3
Ozzie and Harriet are husband and wife, and they live in Idaho (a community property state). Harriet inherits $100,000 from her Aunt Mabel. She then goes and uses that money to buy Whiteacre. Whiteacre is considered community property.
Correct
Incorrect!
Correct The answer is False. Assets that are obtained or purchased by using separate property are considered separate property. Since the $100,000 is considered separate property because it came from a gift from a third party, an asset bought with that money is also considered separate property.
Incorrect! The answer is False. Assets that are obtained or purchased by using separate property are considered separate property. Since the $100,000 is considered separate property because it came from a gift from a third party, an asset bought with that money is also considered separate property.
Question 4
Ozzie and Harriet are husband and wife, and they live in Idaho (a community property state). Harriet inherits $100,000 from her Aunt Mabel. Ozzie and Harriet decide to buy Whiteacre for $500,000. As part of the payment, Harriet uses the $100,000 that she inherited from Aunt Mabel. Whiteacre is considered community property.
Correct If separate property is co-mingled with community property so that it is not possible to tell what the source of the purchase of a specific asset is, then the entire asset is presumed to be community property. Obviously, it is impossible to determine what part of Whiteacre has been purchased with the community property money. Since the separate property has been co-mingled with the community property, the entire asset will be presumed to be community property.Therefore the answer is True.
Incorrect! If separate property is co-mingled with community property so that it is not possible to tell what the source of the purchase of a specific asset is, then the entire asset is presumed to be community property. Obviously, it is impossible to determine what part of Whiteacre has been purchased with the community property money. Since the separate property has been co-mingled with the community property, the entire asset will be presumed to be community property.Therefore the answer is True.