CALIFORNIA FAMILY LAW
...Community Property Issues
......Characterization
.........Property Acquired With Borrowed Funds
............Loan Proceeds Held C/P
8 Cards On This Topic:
  • Loan proceeds from loan taken out in H's name alone held c/p because based on c/p credit.
  • The transmutation requirements had to be met for the character of property purchased with community loan proceeds to become husband's separate property as stated in the conveyance of title.
  • H's personal guarantee of a loan secured by his s/p asset meant that an apportionment of the benefits deriving from the loan proceeds was required.
  • Intent of lender determined by actual ownership of underlying security, not record title.
  • House built after separation, with funds borrowed from H's c/p pension plan, held c/p.
  • The proceeds of a loan made on the personal credit of either spouse are regarded as c/p.
  • Party can't unilaterally apportion proceeds of loans between c/p and s/p.
  • Loan proceeds were c/p because credit was extended on the strength of community earnings.