Legal Question in Family Law in California
divorce
are cash gift considered comunity property or assets bought with cash gift community property.
Asked on 6/04/07, 12:53 pm
1 Answer from Attorneys
PATRICK MCCRARY
PATRICK MCCRARY
Re: divorce
Cash gifts to one party are separate property. Anything bought with that cash is generally community property but the party with the separate property cash will generally get a right to reimbursement to funds used toward the purchase. Example, a $20,000 gift is used to purchase a car. The car is now worth $15,000, the reimbursement is limited to the value of the item purchses. The alternate example is the $20,000 is used to purchase a house in which there is now $150,000 equity. The reimbursement would be for the $20,000. Good Luck, Pat McCrary
Answered on 6/05/07, 1:23 pm