Module 6 Assignment

Question 1
Private real property can be owned in one of three broad forms: sole ownership, joint
or common ownership, and ownership by legal entities (Mayer, Warner, Siedel, &
Lieberman, 2012). Sole ownership means ownership by an individual. Joint, common, or
community ownership means the concurrent ownership of a given piece of real property by
two or more persons. It includes tenancy in common, joint tenancy, and community property.
Tenancy in common is when two or more persons own undivided interests in the title to a
piece of real property. Joint tenancy is said to exist when two or more persons jointly and
equally own the same undivided interest in land. Generally, community property comprises
all property that a husband and a wife acquire during a valid marriage, either jointly or singly.
Finally, legal entities that can legally own real property include corporations, partnerships,
and land trusts.
Question 2
As stated above, community or marital property comprises all property that a husband
and a wife acquire, either jointly or singly, during a valid marriage. On the other hand,
separate property is acquired before the marriage (Mayer et al., 2012). It may have been
acquired by gift or as a devisee or individual heir of a deceased. Separate property may also
include any property that a husband, a wife, or a court order so designates. Separate property
of either the wife or the husband is not marital property.

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Question 3
Transmutation refers to the legal doctrine by which separate property can be changed
into the marital property or the other way around (Mayer et al., 2012). Transmutation of
property can be accomplished through one of two ways: property instruments or agreement.
Generally, deeds executed by the couple or by either spouse which change the nature of a
given piece of property are the most prevalent types of transmutation. However,
transmutation may also happen through a specific marital agreement called a “Transmutation
Agreement.”
Question 4
An example of conversion of separate property into marital property is when, upon
entering a marriage, a wife decides that the separate property she inherited from her deceased
mother should become the property of her new family. To effect the conversion, the wife
would execute a deed, have a Transmutation Agreement written and signed by both herself
and her husband, or enter an oral agreement with her husband to the effect that the separate
property in question is now marital property.
Question 5
If a couple cannot agree on how to divide real property between themselves, the
courts will divide the property using either of two basic schemes: equitable distribution or
community property (Mayer et al., 2012). Under the community property scheme, all
property acquired during the marriage is split on a 50-50 basis. Under the equitable
distribution scheme, marital property is divided fairly (or equitably) but not necessarily
equally. The judge may even order a spouse to use a piece of their separate property to make
the settlement fair to the other spouse.

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Question 6
If a spouse files for bankruptcy during a divorce, the move can have the effect of
delaying a property settlement, even though other family law matters like custody and child
support may move forward (Mayer et al., 2012). This is because when a person files for
bankruptcy, an automatic stay is effected, and a bankruptcy estate is set up. Meanwhile, the
divorce court cannot divide any property, real or otherwise, that is in a bankruptcy estate.

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Reference

Mayer, D., Warner, D., Siedel, G., & Lieberman, J. (2012). Legal Aspects of Property, Estate
Planning, and Insurance. Creative Commons.