Hopkins v. Axene

199 Cal. App. 3d 288, 245 Cal. Rptr. 433, 1987 Cal. App. LEXIS 2505
CourtCalifornia Court of Appeal
DecidedNovember 17, 1987
DocketNo. G004031
StatusPublished
Cited by6 cases

This text of 199 Cal. App. 3d 288 (Hopkins v. Axene) is published on Counsel Stack Legal Research, covering California Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Hopkins v. Axene, 199 Cal. App. 3d 288, 245 Cal. Rptr. 433, 1987 Cal. App. LEXIS 2505 (Cal. Ct. App. 1987).

Opinion

Opinion

WALLIN, Acting P. J.

Does Civil Code section 4800.2 govern in a dissolution proceeding filed after January 1, 1984, but involving property acquired before that time, where judgment was rendered prior to January 1, 1987? On constitutional grounds, we hold it does not.

The facts in this case are undisputed. In 1982, while married, Mary Lou Hopkins (Wife) and Harry Axene (Husband) purchased a Palm Desert [290]*290condominium. Although the entire $198,000 purchase price was paid by Husband from his separate property, title was taken in both parties’ names, as community property.

The parties separated in June 1983 and Wife petitioned for dissolution of marriage in June 1984. The marriage was dissolved in December 1984 and trial on reserved issues was held in January 1986. At trial, Husband requested reimbursement for his separate property contribution to the condominium. He based his claim on Civil Code section 4800.2,1 which permits reimbursement of separate property contributions to community assets, absent a written waiver of reimbursement. Although section 4800.2 was in effect when the dissolution petition was filed, the court refused to apply it because the acquisition preceded the effective date of the statute. At the time of purchase the contrary rule of In re Marriage of Lucas (1980) 27 Cal. 3d 808 [166 Cal.Rptr. 853, 614 P.2d 285] controlled. Husband appeals.

In July 1983, the Legislature added section 4800.2, abolishing the long-standing rule that separate property contributions to community assets were presumed gifts to the community in the absence of a contrary agreement. (See Stats. 1983, ch. 342, §§ 1-4, pp. 1538-1539; for former rule, see In re Marriage of Lucas, supra, 27 Cal. 3d 808.) “As the law stood [before 1983], an agreement was necessary to preserve a separate property interest in funds contributed to the acquisition of a community asset. . . . Under the new law, no agreement is needed: the tables are turned so that the separate property interest is now preserved unless the right to reimbursement is waived in writing.” (In re Marriage of Fabian (1986) 41 Cal. 3d 440, 450 [224 Cal.Rptr. 333, 715 P.2d 253].)

Section 4800.2 provides: “In the division of community property under this part unless a party has made a written waiver of the right to reimbursement or signed a writing that has the effect of a waiver, the party shall be reimbursed for his or her contributions to the acquisition of the property to the extent the party traces the contributions to a separate property source. ...” Section 4800.2 and its companion, section 4800.1, were applicable to all proceedings commenced on or after January 1, 1984. (Stats. 1983, ch. 342, § 4, p. 1539.)

In In re Marriage of Buol (1985) 39 Cal.3d 751 [218 Cal.Rptr. 31, 705 P.2d 354] our Supreme Court held unconstitutional the retroactive application of section 4800.1, which required, upon dissolution, written proof that property taken in joint tenancy during marriage was actually the separate property of one spouse. Applying that section to property acquired before [291]*291the effective date of the statute impaired a vested property right without due process of law.

Shortly thereafter the Supreme Court reached a similar result with respect to section 4800.2. In In re Marriage of Fabian, supra, 41 Cal. 3d 440 husband contributed separate property to a community property purchase. The trial court found no agreement between the parties that husband should be reimbursed upon dissolution and therefore applied the Lucas presumption that husband intended a gift to the community. While husband’s appeal was pending, section 4800.2 was enacted. Although the court found retroactive application of section 4800.2 would decrease wife’s interest in the property, a right which vested upon acquisition, it also acknowledged that “[¡Impairment of a vested property interest, alone, does not invalidate retroactive application of a statutory measure.” (Id., at p. 448.) Other considerations may justify such impairment: “ ‘ “[T]he significance of the state interest served by the law, the importance of the retroactive application of the law to the effectuation of that interest, the extent of reliance upon the former law, the legitimacy of that reliance, the extent of actions taken on the basis of that reliance, and the extent to which the retroactive application of the new law would disrupt those actions.” ’ [Citation.]” (Ibid.)

With those factors in mind, the Fabian court concluded retroactive application of section 4800.2 was not “ ‘necessary to subserve a sufficiently important state interest,’ ” and therefore could not be constitutionally permitted. (Ibid.) “In Buol, we surveyed the legislative history of Assembly Bill No. 26 which contained both sections 4800.1 and 4800.2, and concluded that the significant state interest that compelled retroactivity . . . that of promoting ‘ “equitable dissolution of the marital relationship” ’ by curing a ‘ “rank injustice” ’ in the law, was lacking.” (Ibid.) The court found the state interest in compelling the retroactivity of section 4800.2 similarly lacking.

Also considered by the Fabian court was the disruptive effect of applying the statute retroactively: “It is difficult to imagine greater disruption than retroactive application of an about-face in the law, which directly alters substantial property rights, to parties who are completely incapable of complying with the dictates of the new law. . . . In a case such as this one . . . it is improbable that [the writing now required by section 4800.2] would have been executed prior to the dissolution action or that it could be obtained afterwards. From the time the separate property funds were used to purchase an asset in the name of the community until after entry of the final judgment dissolving the marriage, no writing was required to preserve the community’s interest in that asset. The separate property contribution automatically became a gift to the marital community unless the parties [292]*292specifically agreed otherwise. The spouse who contributed separate property to the community had no right to reimbursement and, logically, there was no requirement that any waiver of such a right be written. By the time the Legislature created the new right to separate property reimbursement which could be waived only by a writing, the parties’ marriage had been terminated by a final judgment of dissolution. The spouse who asserted a separate property right adverse to the community could hardly be expected to then execute a writing waiving his right to the property he claimed.” (Id., at p. 450.)

The Fabian court expressly limited its holding to cases pending on January 1, 1984 (id., at p. 451, fn. 12), leaving undecided the question of whether section 4800.2 is constitutional as applied to dissolution actions filed after the effective date of the statute, but involving property acquired before that time. The Legislature first expressed its views on that issue shortly after Fabian was decided.

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Cite This Page — Counsel Stack

Bluebook (online)
199 Cal. App. 3d 288, 245 Cal. Rptr. 433, 1987 Cal. App. LEXIS 2505, Counsel Stack Legal Research, https://law.counselstack.com/opinion/hopkins-v-axene-calctapp-1987.