California Family Code § 125: Quasi-Community Property

Plain-Language Summary

California Family Code § 125 defines quasi-community property as property a married couple acquired while living in another state that would have been community property if they had been living in California at the time. In plain terms, if a couple moves to California and later divorces here, any assets they obtained in a non–community property state (like New York or Florida) are treated as community property in the California divorce. This prevents one spouse from gaining an unfair advantage simply because the property was acquired in a state with different marital property rules. Quasi-community property generally remains the acquiring spouse’s separate property until a triggering event in California (such as a divorce proceeding) occurs, at which point it is handled the same way as community property.

Real-World Examples

Couple relocates to California: Imagine a couple who lived and bought a home in Ohio (a separate property state) during their marriage. They later move to California and file for divorce. In the California divorce, that Ohio home is treated as quasi-community property – the court will divide it between the spouses just as if it had been acquired in California as community property.
Only one spouse moves to CA: Suppose one spouse moves to California and files for divorce while the other spouse remains in their home state (along with the couple’s property). In this scenario, California’s quasi-community property law generally would not apply to the out-of-state property. Both spouses need to establish California domicile for a California court to have authority to treat their out-of-state assets as quasi-community property.
Exchange of assets: Say a spouse owned a valuable asset (for example, stocks or a rental property) while living outside California, and later sold that asset and used the money to purchase a new asset after moving to California. The new asset would also be considered quasi-community property in a California divorce because it was acquired in exchange for property that would have been community property if originally acquired in California.

Case Law

Addison v. Addison (1965) 62 Cal.2d 558 – In this landmark decision, the California Supreme Court upheld the state’s quasi-community property law. The court ruled that property acquired by spouses while living in another state can be divided as quasi-community property when the couple divorces in California (after becoming California residents). This confirmed that such out-of-state assets are subject to equal division, just like regular community property, upon divorce.
In re Marriage of Roesch (1978) 83 Cal.App.3d 96 – This California Court of Appeal case clarified that both spouses must establish domicile in California before quasi-community property rules can apply. In Roesch, one spouse had moved to California but the other remained in another state; the court held that a California divorce court could not treat the out-of-state property as quasi-community property because both parties were not California residents. This case underscored the requirement that the couple must both be in California for the quasi-community property provision to take effect.

Statutory Text

California Family Code § 125. “Quasi-community property” means all real or personal property, wherever situated, acquired before or after the operative date of this code in any of the following ways:

(a) By either spouse while domiciled elsewhere which would have been community property if the spouse who acquired the property had been domiciled in this state at the time of its acquisition.
(b) In exchange for real or personal property, wherever situated, which would have been community property if the spouse who acquired the property so exchanged had been domiciled in this state at the time of its acquisition.

Disclaimer

This summary is provided for general informational purposes only and does not constitute legal advice. While it explains California Family Code § 125 in plain language, it may not capture every nuance of the law, and laws or their interpretation may change over time. For advice tailored to your specific circumstances, please consult a qualified attorney or refer to the most current official legal resources.