Blackstone

1
Blackstone

• By marriage the husband and wife are one person
  in law. Concept that the legal existence of the
  wife was suspended during the term of the
  marriage. Coverture.
• All these things are done to protect and benefit
  women. so great a favorite is the female sex of
  the laws of England.

2
Classification of property

• Two Marital Property Regimes Common Law and
  Community Property
• Common Law 41 states (including Minnesota)
• Community Property 9 states (including
  Wisconsin)
• Wisconsin adopted the Uniform Marital Property
  Act in 1983 (referred to as recent legislation in
  the Ftn 2, page 35.

3

• 1600-Ralph and Elizabeth marry (in England)
• At the time of marriage Elizabeth owns
  land used as an orchard. She also has livestock,
  and a number of personal possessions.
• At the time of marriage, Ralph owns
  land.
• 1606-A son is born. Elizabeths father Rufus
  gives her more land, devoted to tenant farming,
  some bonds, livestock, several horses and
  carriages, and furniture.
• 1609-Ralphs father dies, leaving him Blackacre.
  He also has acquired additional livestock and
  personal property.
• 1610-Ralph decides to explore the New Land. He
  wants to outfit a ship or two and hire a crew.
• He needs capital to do so.

4

• Assume the buyer is concerned that life
  expectancy among explorers is very short, can
  Ralph show him a document by which Elizabeth has
  conveyed to him her dower interest.

5

• What if Ralph raised enough money, hired a
  captain to contract in his name to have the ships
  build and hire a crew, and the captain disappears
  with Ralphs money and leaving Ralph with
  considerable debt?

6

• Assuming we have time traveled this couple to the
  18th century, Elizabeth father wants to give her
  land and personal property 6 years after the
  marriage but is concerned that Ralph might see
  such property or incur indebtnesses against it.
  What can you advise the father to do?

7
Minn. Stat. 519.02

• All property, real, personal, and mixed, and all
  choses in action, owned by any woman at the time
  of her marriage, shall continue to be her
  separate property, notwithstanding such marriage
  and any married woman, during coverture, may
  receive, acquire, and enjoy property of every
  description, and the rents, issues, and profits
  thereof, and all avails of her contracts and
  industry, free from the control of her husband,
  and from any liability on account of his debts,
  as fully as if she were unmarried.

8

• 1970-George and Martha marry
• Martha owns small portfolio of stocks
  (25,000) gift from her parents.
• George owns nothing
• 1985-Still married.-Martha has not worked during
  the marriage, George has
• Martha still owns her portfolio.
• George has titled in his own name a
  real estate partnership valued at 100,000 a
  house, other investments (totaling 250,000)

9
Problem 1

• Husband and wife work and pool earnings. Husband
  starts crash saving program for our latter
  days. Wifes earnings used for living expenses.
  Husbands earnings invested solely in his name.
  Family home titled solely in his name,
  downpayment from his mother.

10
Problem 2

• 1957 William and Mary marry. He starts a
  business with savings accumulated during the
  first few years of their marriage. She works in
  the business a bit, always paid. He always
  refers to this as our business She never has
  any stock titled in her name. Does she have
  claim on the business.

11
Elements for constructive trust

• 1) promise, express or implied
• 2) transfer of the property and reliance on the
  express or implied promise
• 3) confidential relationship and
• 4) unjust enrichment.

12
(No Transcript)
13
The marriage of John and Mary

• They own House valued at 150,000 (joint
  tenancy)
• Stocks valued at 100,000 (in Johns name)
• Business valued at 500,000 (in Johns name)
• Savings account at 15,000 (in Marys name)
• Savings account at 3,000 (in John or Marys
  name)
• All property has been acquired as a result of
  Johns earnings during the marriage.

14
Boggs v. Boggs

• Pre-1949 Isaac marries Dorothy
• 1949-Isaac begins employment with South Central
  Bell
• Three sons born during the marriage
• 1979-Dorothy dies testate, leaving 1/3 of her
  estate to Isaac, 2/3 to sons, subject to Isaacs
  life estate
• 1980-Isaac marries Sandra
• 1985-Isaac retires
• Isaac receives lump sum distribution,
  stock, and monthly annuity.
• 1989-Isaac dies
• During his working life he has accrued the
  following pension interests
• 1) a lump sum distribution that he rolled over
  into an IRA
• 2) 96 shares of stock purchased through an ESOP
• 3) a monthly annuity payment.

15

• Assume instead that Isaac married to Dorothy.
• He retires and takes lump sum payout. Puts it in
  an account solely in his name (not as joint
  tenants).
• Dorothy dies, leaving her community property
  interest to others, except as limited for spousal
  elective shares what happens?

16
Minn. Stat. 524.2-804

• Subdivision 1. Revocation upon dissolution.
  Except as provided by the express terms of a
  governing instrument, other than a trust
  instrument under section 501B.90, executed prior
  to the dissolution or annulment of an
  individual's marriage, a court order, a contract
  relating to the division of the marital property
  made between individuals before or after their
  marriage, dissolution, or annulment, or a plan
  document governing a qualified or nonqualified
  retirement plan, the dissolution or annulment of
  a marriage revokes any revocable(1)
  disposition, beneficiary designation, or
  appointment of property made by an individual to
  the individual's former spouse in a governing
  instrument(2) provision in a governing
  instrument conferring a general or nongeneral
  power of appointment on an individual's former
  spouse and(3) nomination in a governing
  instrument, nominating an individual's former
  spouse to serve in any fiduciary or
  representative capacity, including a personal
  representative, executor, trustee, conservator,
  agent, or guardian.

17
Engelhoff facts

• David marries X-two children Y and Z
• David divorces X
• David marries Donna Rae
• David designates Donna Rae his beneficiary on his
  ERISA covered pension plan and life insurance
  through his Boeing employment
• April 1994-David and Donna Rae divorce
• June 1994-David dies in a car accident, David has
  no will, Y and Z only intestate heirs.

18

• 1967-Harry and Fran marry, Harry earns
  substantial benefits in ERISA covered pension
  plan
• 1982-Harry and Fran divorce
• Fran signs a waiver in divorce of all pension
  rights in exchange for other property.
• 1983-Harry marries Sally
• 1995-Harry dies
• Harry has never changed the original beneficiary
  designation of Fran.