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Estate of Murphy | 544 P.2d 956 (1976)
We know that spouses generally come into a marriage with separate assets and together acquire what’s called community property during the course of their marriage. But what happens when the spouses commingle separate and community assets? Is there any way to distinguish what is whose in the event of a divorce or in probate after a couple passes? The nineteen seventy six California case of Estate of Murphy examines some of the considerations involved in answering these questions.
John and Royenne Murphy married in nineteen forty two. During their nearly thirty year marriage, John had separate, income producing property. Although this income was substantial, he didn’t keep strong records and commingled the couple’s community property with his separate property. The couple’s community income alone was more than adequate to support the couple and their family. John died in April of nineteen seventy one, and Royenne died eight months later.
John’s heirs filed an action in trial court to determine the estate interests. They contended that John’s separate assets were purchased with John’s separate property and thus shouldn’t be accounted for in the couple’s community property. The trial court determined that John’s heirs failed to provide evidence that John’s separate funds were used to obtain the assets in question. As a result, it awarded Royenne’s heirs half the community property in the estate, including the assets in question. John’s heirs appealed, contending that John had ample separate funds to have purchased the assets separately.
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