Marriage of Craig CA3
C096950
Cal. Ct. App.Apr 14, 2025Background
- Sarah and Ryan Craig were married in 2006 and accumulated approximately $83,000 in a joint account by 2014.
- In April 2014, Sarah left Ryan and moved to California with their children; she later filed for legal separation (2017) and dissolution (2020).
- Shortly after Sarah left, Ryan transferred the $83,000 from the joint account to his personal account without Sarah’s consent, using about $67,000 by the time of separation.
- At trial, Sarah sought reimbursement for half of the depleted funds, arguing Ryan provided little to no support between 2014 and 2017.
- The trial court ordered Ryan to reimburse Sarah for her share of the missing funds, with prejudgment interest, finding Ryan failed to prove proper use of the community assets.
- On appeal, the court modified the judgment to exclude the portion Ryan spent on attorney fees but otherwise affirmed the trial court’s decision and award of interest.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Reimbursement for missing community funds | Ryan wrongfully used funds; Sarah entitled to half | Used funds for living and community obligations; should only divide what remained | Ryan had burden to account for funds; reimburse except for attorney fees |
| Date of separation | April 10, 2014 | March 14, 2017 | February 10, 2017 (when separation petition filed) |
| Burden of proof for missing funds | Ryan controlled funds, should account for use | No need, as expenditures benefitted community | Burden shifted to Ryan to prove community benefit; insufficient proof |
| Prejudgment interest award | Necessary to compensate for lost use of funds | Unfair and unauthorized | Trial court had equitable discretion; award affirmed |
Key Cases Cited
- In re Marriage of Schleich, 8 Cal.App.5th 267 (equal division and abuse of discretion review in dissolution)
- In re Marriage of Honer, 236 Cal.App.4th 687 (standards for reviewing property division)
- In re Marriage of Economou, 224 Cal.App.3d 1466 (misappropriation of community assets)
- In re Marriage of Feldner, 40 Cal.App.4th 617 (burden of proof for proving misappropriation)
- In re Marriage of Margulis, 198 Cal.App.4th 1252 (burden shifts to managing spouse to account for missing assets after prima facie showing)
- In re Marriage of DeSouza, 54 Cal.App.5th 25 (fiduciary review in community property management)
- In re Marriage of Valle, 53 Cal.App.3d 837 (credibility of uncorroborated testimony in family law)