Divorce Settlements - Who Gets the Porsche?
In the case of the marriage of Buie & Neighbors (2009), one of the disputes was over the ownership of a 2001 Porsche. During the marriage, Husband purchased the 2001 Porsche using a check drawn on Wife's bank account that held funds derived from Wife's sale of her separate property residence. Husband argued that the Porsche because it was a gift to him by the Wife. The court was then asked to make a decision as to who gets the Porsche.
In assessing the claim under Family Code 852, the court make no findings about whether the Porsche was a "tangible article of a personal nature," but instead focused on whether or not it was substantial in value taking into account the circumstances of the marriage. The court then found that the Porsche was not substantial in value in the context of this marriage and ruled that the Porsche was Husband's separate property, even though there was no writing executed by Wife that transmitted it to him. Wife filed and appeal and the Appellate Court reversed the decision. The Court reaffirmed that married persons may transmute community property to separate property but only if the transmutation is made in writing by an express declaration, by the spouse whose interest in the property is adversely affected. The court found no writing and found that the Porsche is not an article of a personal nature and that Wife must be reimbursed for the funds used to purchase the vehicle.
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