California Bank v. Schlesinger

159 Cal. App. 2d 854
CourtAppellate Division of the Superior Court of California
DecidedMarch 26, 1958
DocketCiv. A. No. 9433
StatusPublished

This text of 159 Cal. App. 2d 854 (California Bank v. Schlesinger) is published on Counsel Stack Legal Research, covering Appellate Division of the Superior Court of California primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
California Bank v. Schlesinger, 159 Cal. App. 2d 854 (Cal. Ct. App. 1958).

Opinions

DAVID, J.

In this case, title to certain joint tenancy property was homesteaded by husband and wife. Thereafter on March 2, 1948, the wife, the defendant here, secured a final decree of divorce which did not assign the homestead as it could have done under Civil Code, section 146. On September 18, 1950, the defendant’s former husband quitclaimed his joint tenancy interest to her. After the divorce, she continued to reside alone upon the property, and executed a trust deed upon it to secure a note. The creditors hold judgments upon debts of the defendant Schlesinger, incurred after the divorce, and are given judgment herein against the net proceeds held by the interpleading plaintiff for the defendant after foreclosure of the trust deed and payment of the note. The foreclosure occurred on January 15, 1957. This action in interpleader was commenced February 14, 1957. We conclude that the homestead exemption from execution existed following the divorce, and defendant is entitled to all of the funds interpleaded, since they are less than the exemption (Civ. Code, § 1260, subds. 1, 2) and their exempt character continued following the foreclosure sale to the time of this action (Civ. Code, § 1265).

It is now established that a homestead can be declared upon property held in joint tenancy or tenancy in common. (Civ. Code, § 1238; Estate of Kachigian (1942), 20 Cal.2d 787, 790 [128 P.2d 865].) As between a creditor and the claimant of a homestead exemption, the state of the latter’s title is immaterial. (Brooks v. Hyde (1869), 37 Cal. 366.)

What were the incidents to a homestead on a joint tenancy? (1) By homesteading, each party waives the right to set aside his separate interest by partition (Walton v. Walton (1943), 59 Cal.App.2d 26, 31 et seq. [138 P.2d 54]; Kaupe v. [858]*858Kaupe (1955), 131 Cal.App.2d 511 [280 P.2d 856] ; see Barber v. Babel (1868), 36 Cal. 11, 17, and Hannon v. Southern Pac. R. R. Co. (1909), 12 Cal.App. 350, 358 [107 P. 335]). (2) Each party loses the right to unilaterally convey the property (Civ. Code, § 1242; Swan v. Walden (1909), 156 Cal. 195 [103 P. 931, 134 Am.St.Rep. 118, 20 Ann.Cas. 194]) or to hind it for debts (cf. Bartholomew v. Hook (1863), 23 Cal. 277); (3) the only way to terminate the homestead is by the mode provided in Civil Code, §§ 1243-1244, 1265 and 146. (Consult: Tipton v. Martin (1886), 71 Cal. 325, 328 [12 P. 244] ; Lubbock v. McMann (1889), 82 Cal. 226 [22 P. 1145, 16 Am.St.Rep. 108] ; see Mills v. Stump (1912), 20 Cal.App. 84, 88-89 [128 P. 349].) (4) The homesteading gives exemption from forced sale under Civil Code, section 1243. Thereafter, this exemption is a continuing right, until there is an abandonment by the parties, or by the sole party claiming it. Upon any sale by the claimant, the exemption attaches to the proceeds (Civ. Code, § 1265). (5) In a pending divorce action, the court may make a temporary assignment of the homestead at any stage of the proceeding; and upon dissolution is to make certain assignments of the homestead.

The disposition of a homestead upon divorce is now regulated by Civil Code, section 146. Since the interest of each joint tenant is separate property, (Kaupe v. Kaupe, supra (1955), 131 Cal.App.2d 511, 513) the applicable provision for disposition on divorce is subparagraph Four: “If . . . selected from the separate property of either, ... it shall be assigned to the former owner of such property, subject to the power of the court to assign it for a limited period to the [innocent party]. ’ Civil Code, section 1265, is general in its terms: “From and after the time the [homestead] declaration is filed for record, the premises therein described constitute a homestead.” There then is a statement as to survivorship when the homestead has been established by a married person, and when “in other cases”; and then provides: “in no case [emphasis added] shall it, or the products, rents, issues or profits thereof be held liable for the debts of the owner, except as provided in this title; and should the homestead be sold by the owner, the proceeds arising from such sale to the extent of the value allowed for a homestead exemption as provided in this title shall be exempt to the owner of the homestead for a period of six months next following such sale. ” In a ease, such as this, the homestead exemption of the ex-wife continued after divorce and after the ex-[859]*859husband’s relinquishment of his property interest to her (City Store v. Cofer (1896), 111 Cal. 482 [44 P. 168] ; Brandon v. Faria (1929), 99 Cal.App. 594, 597 [279 P. 192] ; Estate of Teel (1949), 34 Cal.2d 349, 352, 354 [210 P.2d 1] ; continues after claimant ceases to have a family: Roth v. Insley (1890), 86 Cal. 134 [24 P. 853]). If a homestead can be assigned (Civ. Code, § 146), it obviously continues as a homestead after divorce. It would defeat Civil Code, sections 146 and 1265, if it were held that “since divorce terminated the family, there was no homestead to assign” to the former owner.

To the extent that the property interest of each of the ex-spouses was separate, it was mandatory under Civil Code, sections 146 and 1265, that the court assign the homestead upon such interest to each separate property owner upon divorce. As they were already joint tenants, it was unnecessary to make any order as to title. The statute is mandatory, as to the homestead. A failure of the court specifically to assign the homestead back to the former owner, however, is immaterial. That which is required to be done is considered done (Civ. Code, § 3529) in such instances. This was the implied holding under like circumstances in City Store v. Cofer (1896), 111 Cal. 482 [44 P. 168]. In this case, the entire title was vested in the ex-wife before the creditors’ claims were reduced to judgments, but remained subject to the homestead exemption. (City Store v. Cofer, supra (1896), 111 Cal. 482; Zanone v. Sprague (1911), 16 Cal.App. 333, 342 [116 P. 989] ; Roth v. Insley, supra (1890), 86 Cal. 134; cf. Walton v. Walton, supra (1943), 59 Cal.App.2d 26; Dougherty v. White (1924), 112 Neb. 675 [200 N.W. 884, 885; 36 A.L.R. 425].) In City Store v. Cofer, supra (1896), 111 Cal. 482, it was unsuccessfully contended that the divorce ipso facto terminated the homestead exemption, citing Shoemake v. Chalfant (1874), 47 Cal. 432, 435, and Burkett v. Burkett (1889), 78 Cal. 310 [20 P. 715, 12 Am.St.Rep. 58, 3 L.R.A. 781].

Under Civil Code, section 146, the right of one spouse upon divorce to secure an assignment in the property rights of the other, created by the homestead, perishes by failure to secure an assignment of that homestead right in the property of the other ex-spouse in the divorce decree. (Zanone v. Sprague, supra (1911), 16 Cal.App. 333; Lang v. Lang (1920), 182 Cal. 765 [190 P. 181].)

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159 Cal. App. 2d 854, Counsel Stack Legal Research, https://law.counselstack.com/opinion/california-bank-v-schlesinger-calappdeptsuper-1958.