Use the 3-step source, actions, presumptions (SAP) approach as it will help you spot the issues and organize your answer. Within the SAP approach use the IRAC writing method to discuss each issue and sub-issue raised by the facts. You start by reading the hypothetical below:

All the following events occurred in California.

Hal, a computer programmer, and Wendy, an attorney, married in September of 1986. Several months before the wedding, they verbally agreed that the earnings of Wendy after marriage would be her separate property.

In 1987, Hal and Wendy purchased a single family residence as their home, taking title as "Hal and Wendy in joint tenancy with right of survivorship." Wendy made the down payment of $10,000 from a bank account in her name alone that contained earnings accumulated before marriage. Hal and Wendy obtained a note secured by a 30-year mortgage for the remainder of the $100,000 purchase price. Thereafter, Wendy made monthly payments on the note from her earnings as an attorney.

In 1990, Hal inherited 100 shares of ABC stock worth $50,000 from his grandmother. Five years later, he sold the stock for $150,000, using the proceeds to purchase a bicycle repair shop, the "Fifth Wheel." Hal quit his job as a computer programmer and began working full time at the shop. He received no salary and instead used the shop's profits to expand the business.

In 1998, Wendy obtained a large jury verdict in one of her cases and used a portion of the contingency fee she received to pay off the existing mortgage balance on the residence.

In March of 2000, Hal discovered that Wendy was having an affair with another attorney in her office. Hal moved out and began sleeping at the "Fifth Wheel," but he told his friends that he thought he could "win her back" by winning the Death Ride, a 100-mile bike race, that July. In June, while training on a windy mountain road, Hal was hit by an oncoming truck as he came around a curve on his bicycle. Miraculously, he survived, suffering only minor injuries.

Hal moved back home with Wendy and incurred medical expenses in the amount of $5,000, which were paid from their joint account. In October 2000, Hal settled the claim against the truck driver for his injuries and received $350,000. He deposited the money in an existing savings account in his name only. The account contained only two previous deposits, a 1995 inheritance from his father and his winnings from a 1999 bicycle race. In December 2000, Wendy told him that their marriage was over and filed for dissolution. What are Hal and Wendy's respective rights in the following?

1. The residence, which is now worth $750,000? Discuss.
2. The savings account in Hal's name? Discuss.
3. The "Fifth Wheel" which is now worth $500,000? Discuss.