In Re Marriage of Rossin

Summary

The wife bought a private disability policy nine years before the marriage, paid every premium herself, and began collecting benefits before the wedding. The trial court called the benefits received during marriage community property because they replaced wages. The Court of Appeal held that the right to the benefits accrued before marriage with no community contribution, so the benefits are her separate property and the wage-replacement function does not matter. Reversed and remanded with instructions to award the benefits received during marriage to the wife.

What it means for the financial analysis

Date the right to the benefits and follow the premiums before looking at what the payments replace. If the policy was bought and paid for with separate funds before marriage, the monthly receipts are separate even though they arrived during marriage. The Saslow functional analysis only comes into play when community funds paid premiums, so the schedule should show when each premium was paid and from which account. Absent a transmutation or a title presumption, commingling of the payments is a tracing question, not a reason to change their character.

Also available on CourtListener.