Legal Question in Civil Litigation in California

Re: what does a married woman do?

This is a rather intricate area of the law, but based on what you have said I don't believe the husband is entitled to claim the money as his own.

Getting married in California (or moving into the state while already married) forms what is called a marital community, and the community generally owns whatever the husband and wife acquire during the marriage. There are exceptions to this rule and there are ways a spouse can keep some assets private, but it doesn't seem that the husband did so here.

If the husband had his own investment account before marriage and stopped putting money into it after the wedding, then he would be the separate owner of the principal and of all the increased value of the account. He would also be entitled to any dividend payments the account generated. However, any money that he takes from the marital community -- and a shared bank account almost certainly qualifies -- remains community property even after he adds it to the investment account.

The fact that the husband is restoring his account balance to a level it had reached before the marriage does not make the money his property unless it was already his separate property before he made the deposit. This does not seem to be the case, so the wife should still own half of the added amount -- and of any interest, dividends and increased value that might accrue in the future. What matters isn't whether he has the same *amount* of money he had before, but rather whether it is actualy the same money (or the proceeds of that money).

Does she need to divorce the husband because he did this? No. If she loves him and is otherwise happy then there is no reason to end the marriage. But if either spouse decides in the future to divorce the other, she will be entitled to a portion of the value of the investment account regardless of hubby's belief that he owns all of it. The passage of time will not affect this analysis (unless, perhaps, the law changes in the interim); in other words, the money will not become the husband's sole property at some point in the future, and the wife does not need to do anything now to maintain her entitlement to the funds.

As I said, this is an intricate area of the law and it is possible that facts unknown to me would lead to a different result. Your friend should consult a family law attorney if the amount of money is large enough to be a real subject of concern. She should also preserve any evidence she may have of this transaction so that it will be readily available in the event of a divorce.

Re: what does a married woman do?

She needs to consult with a family law attorney to discuss the facts of her case and then determine the course of action which is best suited to her needs.