In re Marriage of Cochran

In In re Marriage of Cochran (2001) 87 Cal.App.4th 1050, Jack and Lucy Cochran were married in 1981. In 1985, they purchased a wind turbine generator for $ 70,000. In 1987, Jack liquidated a profit sharing plan totaling $ 77,395.14 in funds acquired before and during the marriage. These funds were deposited in an account at Chino Bank. The parties stipulated that $ 43,061.24 was Jack's separate property and $ 34,405.51 was community property. Jack wrote three checks on the account. The first, for $ 34,192.15, was used to pay off the generator. The second check, for $ 32,950, was for payment of earnest money for a home construction loan, and a third, for $ 9,258, was a school fee payment as a condition for obtaining a building permit for the parties' family home. In dissolution proceedings, husband argued he was entitled to reimbursement for payment of the earnest money and school fee payment out of his separate funds in the Chino Bank account. The trial court rejected the claim. Relying on the family expense presumption, the Cochran court held it was presumed community funds in the Chino Bank account were used first to pay off the generator debt, since that debt was a community property debt. With the exception of $ 213, the remainder of the funds in the account were determined to be Jack's separate property. The court concluded: "While ordinarily, in order to receive reimbursement, husband would be required to provide detailed records showing that separate property was used ( See v. See (1966) 64 Cal.2d 778, 784, 51 Cal. Rptr. 888, 415 P.2d 776 . . . ; In re Marriage of Frick, supra, 181 Cal. App. 3d at p. 1011), in the instant case this was not necessary. The evidence sufficiently established the portion of separate and community property deposited in the account, and once the community property funds were exhausted, it could be presumed that the subsequent payments were separate property expenditures under section 2640." (In re Marriage of Cochran, supra, 87 Cal.App.4th at p. 1059.)