American Olean Tile Co. v. Schultze

In American Olean Tile Co. v. Schultze (1985) 169 Cal.App.3d 359, the plaintiff filed an action against the ex-wife and ex-husband on a promissory note the ex-husband had signed days after he and the ex-wife had executed a settlement agreement dividing their community property. (Id. at p. 363.) The plaintiff obtained a prejudgment attachment of a promissory note, secured by a deed of trust on real property, that had originally been payable to both the ex-husband and ex-wife. (Id. at pp. 363-364.) When that note was converted to cash, the sheriff was ordered to hold the proceeds subject to the prejudgment attachment order. (Id. at p. 364.) The trial court held that the debt was the ex-husband's separate obligation. (Ibid.) The trial court entered judgment in favor of the plaintiff against the husband and also entered judgment for the ex-wife, holding that the former community property she held was not liable for the debt the ex-husband had incurred after the separation. The court therefore discharged the prejudgment attachment as to the ex-wife, and on appeal, the court affirmed, holding that the debt was the ex-husband's separate obligation. (Ibid.)