Question

Which of the following is a community asset under California community property laws?
An $80,000 inheritance. Emily inherited $80,000 from her grandmother this year. She was married to James when she received this inheritance.
A diamond bracelet. Olivia received the bracelet as a gift from her father. Olivia was married to Michael when the gift was made.
A tract of land held for investment. Ethan acquired the land while single and married Sophia the next year.
A car purchased with joint funds. Sarah and John bought the car together while they were married.

Answer 1

The car purchased with joint funds (Sarah and John) is the community asset.

Why:
- Car purchased while married with joint (community) funds = community property (Family Code §760: property acquired during marriage is community property).
- $80,000 inheritance to Emily = separate property (gifts, bequests and inheritances to one spouse are separate; Fam. Code §770).
- Diamond bracelet gifted to Olivia by her father = separate property (a gift to one spouse is separate).
- Land acquired by Ethan while single = separate property (property acquired before marriage is separate unless transmuted or later commingled).