In Re Marriage of Starr

189 Cal. App. 4th 277, 116 Cal. Rptr. 3d 813
CourtCalifornia Court of Appeal
DecidedSeptember 30, 2010
DocketB219539
StatusPublished
Cited by27 cases

This text of 189 Cal. App. 4th 277 (In Re Marriage of Starr) 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
In Re Marriage of Starr, 189 Cal. App. 4th 277, 116 Cal. Rptr. 3d 813 (Cal. Ct. App. 2010).

Opinion

Opinion

RUBIN, Acting P. J.—

Starr Starr appeals from the judgment entered after the family law court found that the house he bought in his name only while married to former wife Martha Starr was community property and ordered him to convey the property to them both as tenants in common. The evidence shows that Martha quitclaimed her interest in the house based on Ron’s promise to put her on title after the purchase was completed, but that Ron failed to do so. As a result, the evidence supports a finding that the house was community property based on Ron’s violation of his fiduciary duties to Martha. We also conclude that the trial court properly valued the community and separate property interests in the house, and did not err in denying Ron’s request to refund his overpayment of child support credits. We therefore affirm the judgment.

*280 FACTS AND PROCEDURAL HISTORY

In late 1996, Ron Starr bought a house in Glendora, taking title in his name only as his separate property even though he was then married to Martha Starr. 1 Ron filed for divorce in April 2004. In his petition, signed under penalty of perjury, he listed the house as community property, but sought the return of his separate property contributions to the property. By the time of trial, however, Ron contended the house was his separate property. 2

Ron testified that the house was bought in his name only because the $50,000 downpayment came from his separate property funds, and he and Martha intended all along that the house would be his separate property. In accord with that plan, Martha quitclaimed her interest in the house before escrow closed. Property taxes and mortgage payments came from community property earnings, Ron testified.

Under Family Code section 721, Ron had the burden of proving that the quitclaim transaction satisfied his fiduciary duties to Martha. She testified that because of her poor credit history, the lender recommended she agree to the quitclaim so she and Ron could qualify for a better interest rate. The loan broker told Martha and Ron they could add Martha back onto the title by way of a quitclaim deed within 45 days of the close of escrow. Martha had a discussion with Ron about adding her onto the title, and he said he would do that. Martha said she and Ron jointly offered to buy the house, and that the deed to Ron was mailed to them both after it had been recorded. Although Ron never added Martha onto the title, she never worried about it because “He’s my husband. I just don’t . . . mistrust him. You know, it was our house.” She signed the quitclaim deed freely and voluntarily.

Ron was impeached with his deposition testimony, where he said title was taken in his name in order to facilitate the financing. When asked on cross-examination about the statement on his divorce petition that the house was community property, Ron said he could not recall whether his former lawyer went over his assets with him before signing the petition, and that he probably did not read it before signing.

The trial court found that the house was community property, but that Ron was entitled to reimbursement of the $50,000 downpayment from his separate property funds. Ron was ordered to convey the house to himself and Martha *281 as tenants in common. In its statement of decision, the court said the “controlling cases on the issue” were In re Marriage of Benson (2005) 36 Cal.4th 1096 [32 Cal.Rptr.3d 471, 116 P.3d 1152] (Benson), In re Marriage of Mathews (2005) 133 Cal.App.4th 624 [35 Cal.Rptr.3d 1] (Mathews), In re Marriage of Delaney (2003) 111 Cal.App.4th 991 [4 Cal.Rptr.3d 378] (Delaney), and In re Marriage of Haines (1995) 33 Cal.App.4th 277 [39 Cal.Rptr.2d 673] (Haines). In a separate paragraph, the trial court found that Ron did not meet his burden of proof that Martha’s quitclaim deed was signed “freely and voluntarily. The reason [Martha] did not sign the quitclaim deed freely and voluntarily was because the intent of the lender controlled title to the [house] when the lender suggested that [Martha’s] name be left off of the mortgage for the purposes of financing, and [Martha] agreed to execute the quitclaim deed based on the lender’s suggestion.”

Ron contends the trial court erred because it relied on the “lender’s intent” theory, which is applicable only to determining whether loan proceeds obtained during marriage are community or separate property. Instead, according to Ron, the court should have applied the reasoning of the factually similar Mathews, supra, 133 Cal.App.4th 624, and found that he satisfied his fiduciary obligations to Martha based on her testimony that she signed the quitclaim deed freely and voluntarily.

DISCUSSION

1. Family Code Section 721

Although spouses may enter transactions with each other (Fam. Code, § 721, subd. (a)), such transactions “are subject to the general rules governing fiduciary relationships which control the actions of persons occupying confidential relations with each other. This confidential relationship imposes a duty of the highest good faith and fair dealing on each spouse, and neither shall take any unfair advantage of the other. This confidential relationship is a fiduciary relationship subject to the same rights and duties of’ unmarried business partners, including the right of access to records and information concerning their transactions. (Fam. Code, § 721, subd. (b).) 3

Because of this, our courts have long held that when an interspousal transaction advantages one spouse, public policy considerations create a presumption that the transaction was the result of undue influence. (Haines, supra, 33 Cal.App.4th at pp. 293-294.) A spouse who gained an advantage from a transaction with the other spouse can overcome that presumption by a preponderance of the evidence. (Mathews, supra, 133 Cal.App.4th at pp. 631-632.)

*282 2. The Haines Decision

In Haines, a wife who quitclaimed her interest in the house she jointly owned with her husband sought to invalidate the deed during their divorce proceedings because she was coerced into signing it. The wife testified that she and her husband had several arguments about signing the deed as their marriage deteriorated. She claimed the husband ranted and raved, pulled her hair, and threw water in her face during one of these arguments. Later, the husband agreed to cosign a loan for the wife so she could buy herself a car that she would need once she was on her own. While the husband was driving the wife to her credit union to cosign the loan, he told her he would not do so unless she agreed to the quitclaim deed. She signed the deed because she felt she had no alternative.

Evidence Code section 662 creates a presumption that title is actually held as described in a deed.

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Cite This Page — Counsel Stack

Bluebook (online)
189 Cal. App. 4th 277, 116 Cal. Rptr. 3d 813, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-marriage-of-starr-calctapp-2010.