Question
In 2015, Hank, a California resident, purchased shares of stock and kept the shares in his brokerage account. In 2016, Hank met Wendy, also a
In 2015, Hank, a California resident, purchased shares of stock and kept the shares in his brokerage account. In 2016, Hank met Wendy, also a California resident, and they were married later that year. The shares in the brokerage account paid him an annual cash dividend of $3,000, which Hank deposited into a savings account he opened after marriage in his name alone. In 2017, Wendy was hired by MedCo. The hiring manager at MedCo enticed Wendy to take the job by telling her that successful employees at MedCo receive bonuses of company stock options. Later that year, Wendy was given options on 1,000 shares of MedCo. stock. The stock options are exercisable in 2022, as long as Wendy is still working for MedCo. In 2019, because of marital difficulties, Wendy moved out of the home she had shared with Hank. Nevertheless, the couple continued to attend marriage counseling sessions that they had been attending for several months. In 2020, Hank was injured in an automobile accident. In 2021, Hank and Wendy discontinued marriage counseling and filed for dissolution of marriage. In 2022, Hank settled his personal injury claim from the automobile accident for $20,000. The settlement included reimbursement for $5,000 of medical expenses that had been paid with community funds. Hank had a child by a prior marriage and, over the course of his marriage to Wendy, had paid out of community funds a total of $18,000 as child support.
1. When making the final property division in Hank and Wendy's dissolution proceeding, how should the court characterize the following items: a. Hank's savings account? Discuss. b. Hank's personal injury settlement? Discuss. c. Wendy's stock options? Discuss.
2. Should the court require Hank to reimburse the community for his child support payments and, if so, in what amount? Discuss. Answer according to California law.
Please answer Using California Property Laws in IRAC format?
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