California Marital Settlements: July 2000 Summary

Legal Developments

Insurer May Rely on Joint Record Title to Automobile After Dissolution

In GEICO v. Superior Court (Sims) (2000) 79 Cal.App.4th 95, 93 Cal.Rptr.2d 820, the court held that the former wife's failure to change the record title of an automobile distributed to her in the dissolution justified her insurance company's payment of the policy proceeds to the former husband. This case underscores the importance of changing record title to assets distributed in a marital dissolution

Spousal Support May Be Terminated Based on Size of Recipient's Estate

In In re Marriage of Terry (2000) 80 Cal.App.4th 921, 95 Cal.Rptr.2d 760, the court held that spousal support could properly be terminated when the supported spouse's separate property estate, including assets distributed to her in the dissolution, had become sufficient to generate enough income to meet her needs if reasonably managed, even if this might require a change in her investment strategy.

Standard of Proof for Custody Sharing Modification Remains Unresolved

On January 13, 2000, the California Supreme Court dismissed the pending petition for review in In re Marriage of Congdon due to a settlement, leaving the issue unresolved as to what showing must be made in order to change the specific custody sharing arrangement between parents with joint physical custody of their minor children. (In re Marriage of Congdon (2000) 92 Cal.Rptr.2d 254 (S077916).)

Judgment of Separation Terminates Intestate Succession Rights

In Estate of Lahey (1999) 76 Cal.App.4th 1056, 91 Cal.Rptr.2d 30, the court held that when one spouse dies after the entry of a judgment of legal separation, the survivor does not qualify as a "surviving spouse" for the purpose of intestate succession.