Newman v. Newman

268 Cal. App. 2d 895, 74 Cal. Rptr. 444, 1969 Cal. App. LEXIS 1756
CourtCalifornia Court of Appeal
DecidedJanuary 21, 1969
DocketCiv. 32427
StatusPublished
Cited by1 cases

This text of 268 Cal. App. 2d 895 (Newman v. Newman) 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
Newman v. Newman, 268 Cal. App. 2d 895, 74 Cal. Rptr. 444, 1969 Cal. App. LEXIS 1756 (Cal. Ct. App. 1969).

Opinion

*897 ROTH. P. J.

This is an appeal from portions of an interlocutory decree which awarded a divorce to respondent, denied appellant alimony and subordinated to community debts appellant’s right to receive from the proceeds of the sale of the equities in parties’ residence the amount of her separate property interest therein.

There are two children, one born in 1948 and adopted by respondent, the other born in 1956.

Appellant-wife initiated the action after 12 years of marriage. Respondent-husband cross-complained. Bach spouse alleged that the other committed acts of extreme cruelty. Bach party was granted a decree.

A letter from respondent to appellant, written in connection with a previous aborted action for separate maintenance, acknowledged that the sum of $8,400 invested in the residence of the parties was separate property of appellant and stipulated that if it were sold appellant should receive that amount " off the top ’ ’ before there was any other division made of the proceeds of sale.

The trial court found that appellant had a separate property interest in the amount of $8 400 in the equity which the parties had in their residence and provided for repayment to appellant of that amount from the proceeds of sale after community debts were paid from those proceeds and for an equal division of the remainder, if any, between the parties.

Appellant asserts error because the trial court subjected appellant’s separate property interest to the payment of community debts. Sale was ordered and jurisdiction reserved.

At the time of the trial the property had not been sold. There was no way for the trier of fact to determine with certainty what the total sales price of the residence would be. Evidence showed the residence to have a market value between $34.000 and $35,000. Based on this figure, there would be after subtracting encumbrances, an equity in excess of the amount of the community debts and the separate property interest of appellant.

There was an extended discussion in the trial court between respective counsel and the trial judge, which respondent urges amounted to an oral stipulation by the parties that community debts were to be paid from the proceeds before payment to appellant of her separate $8,400 interest. The discussion Which we have read does not show such an agreement. It does *898 show that the trial judge and the parties were under the impression that there would be enough to pay both. The discussion concluded with the following statements which make clear appellant’s position:

Mb. Schmobleitz, appellant’s counsel: “Tour Honor, I would like to ask the Court to reconsider the matter of the priority of the payment of debts and place the payment of the $8400.00 in advance of the payment of the community debts as found by the Court, to the end that if there are unpaid community debts and there isn’t sufficient to discharge them, then, the parties be chargeable with them half and half, but that the $8400.00 be marked primarily to my client’s benefit as a first priority.

“The Coubt: Well, that lets her come out of this marriage with her $8400.00 intact and him bankrupt, and they entered into this for better or for worse. I don’t think the testimony concerning this conduct has indicated to me that she is entitled to come out better than he is. The order will remain. ’ ’

Pending this appeal, the real property has in fact been sold and the net proceeds thereof are insufficient to pay the obligations as ordered by the trial court and to pay to appellant the sum of $8,400.

Civil Code, section 171 1 states that the separate property of the wife is not liable for the husband’s debts. “Debts of the husband” include debts incurred for the benefit of the community as well as the husband’s own separate debts. (Street v. Bertolone, 193 Cal. 751, 753 [226 P. 913] ; Grolemund v. Cafferata, 17 Cal.2d 679, 688 [111 P.2d 641].)

The precise language of Civil Code, section 171 indicates that the trial judge erred in requiring the payment of community obligations before payment to wife of her separate property interest.

“Debts of the husband” is defined in Grolemund v. Cafferata, 17 Cal.2d 679 [111 P.2d 641] and Street v. Bertolone, 193 *899 Cal. 751 [226 P. 913], to include debts incurred by husband for benefit of community.

If the debt is not for necessaries, the wife’s separate property is exempt. If it is for necessaries, the wife’s separate property is still exempt unless she received the separate property as a gift from her husband during marriage.

There are no findings in the record that the community debts were for necessaries or the appellant’s separate property was a gift from her husband after their marriage.

Rosen v. Rosen, 17 Cal.App.2d 601, 603 [62 P.2d 384] and Birkhauser v. Ross, 102 Cal.App. 582 [283 P. 866], support the proposition that wife’s separate property is not liable for the husband’s debts other than for necessaries, even when traced with non-exempt property into a new subject matter.

Medical Finance Assn. v. Allum, 22 Cal.App.2d Supp. 747, 750 [66 P.2d 761], points out that: (1) The wife is entitled to an opportunity, before her separate property capable of being taken to pay for debts shall be seized in execution to show, if she can, that the conditions prescribed by the statute upon which such property may be so taken do not in fact exist.

Discussing other cases, the court in Allum says at page 753 : “The most that respondent can glean from any of the eases cited is a doctrine that a judgment against a wife predicated upon the theory of liability created or implied by section 171 of the Civil Code [necessaries] may be general in terms, deferring until levy of execution judicial pronouncement of its circumscription, thereby imposing upon the apparent judgment debtor the burden of establishing, through possible further litigation, the true character and limits of the statutory liability upon which the judgment is based, or such judgment may within its own terms declare the limitations which encompass the liability imposed by the statute. In neither event can the judgment be satisfied out of any property not covered by such statute and if in the judgment the court undertakes to declare the property out of which it may be satisfied the limitations of the statute may not be exceeded.”

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Related

In Re Marriage of Leib
80 Cal. App. 3d 629 (California Court of Appeal, 1978)

Cite This Page — Counsel Stack

Bluebook (online)
268 Cal. App. 2d 895, 74 Cal. Rptr. 444, 1969 Cal. App. LEXIS 1756, Counsel Stack Legal Research, https://law.counselstack.com/opinion/newman-v-newman-calctapp-1969.