Download Community Property and Divorce: A Complex Case Study and more Exams Property Law in PDF only on Docsity! EXAM #_________________________ Page 2 of 3 Kosel: Community Property Final Exam, SU2012 ESSAY QUESTION Wendy and Harry married in 2002. At that time, Wendy was a paralegal and Harry was a firefighter. Given that Harry was on duty three days at a time, Wendy grew lonely and decided to enroll in law school in 2005 as a part time evening student so that she could continue to work. Wendy graduated in 2009 and has flunked the bar six times. She is not sure she is emotionally equipped to take the bar a seventh time this July, especially given the stress of her family situation. Harry announced in April 2010 that he wanted a divorce. He refused Wendy’s request to seek counseling. And he asked Wendy to move out of the house they shared which he owned prior to their marriage. Wendy’s efforts to find a new place to live were stymied when her law firm dissolved and Wendy lost her job. Try as she might, given the economy, she has been unable to find a job since then. As a result, Wendy has been sleeping on the couch in the living room for the last two years. His patience long since exhausted, Harry wants to file for divorce. That would certainly please Gina, his girl friend of six months who seriously disapproves of Harry’s current living situation. You are Harry’s attorney. In response to your questions, he provides the following additional information about the couple’s financial situation. 1. Harry bought the house in 1990 for $100,000. In 2008 he refinanced the remaining mortgage of $50,000 to reduce the interest rate from 6.5% to 4.5%. At that time, the lender required him to change the form of title from Harry’s name alone to Harry and Wendy, husband and wife. The house is now worth $200,000. At the time of the refinance, it was appraised at $300,000. 2. Harry also owns a small cottage which he purchased at a foreclosure sale last year for all cash. The cottage cost $100,000 -- $25,000 less than the check he received as his share of his mother’s estate. He deposited that check in the couple’s joint checking account the month before purchasing the cottage and withdrew the $100,000 as a cashier’s check in his name alone. The cottage is titled in his name alone. Like most firefighters, Harry is quite handy. He estimates that he has spent nearly 200 hours and $10,000 in the last year fixing up the cottage. It is now ready to rent. 3. Harry has worked as a firefighter for twenty years. He intends to retire in another ten years. At that time, he will receive a pension equal to 3 per cent times 30 years of employment times his highest annual salary. The city is talking about offering an additional year or two of credit for firefighters who retire early because the city thinks it will save money by hiring younger firefighter with lesser retirement benefits. 4. At the time of marriage, Harry had stock investments of approximately $200,000. Harry’s brother manages the account. Harry never makes investment decisions or withdrawals. The present value of the account is $500,000. Question continues.
