In re Marriage of Jones

In In re Marriage of Jones (1975) 13 Cal.3d 457, the California Supreme Court held that periodic disability retirement payments which are received during a marriage are community property, in that they compensate the community for loss of income that the injured spouse would otherwise have earned, while periodic disability payments received after separation are the separate property of the injured spouse because those payments are intended to compensate the injured spouse alone for his or her diminished earning capacity: "So long as the marriage subsists, the injured spouse's reduced earnings works a loss to the community. But such community loss does not continue after dissolution; at that point the earnings or accumulations of each party are the separate property of such party. Then any diminution in earning capacity becomes the separate loss of the disabled spouse." (Id. at p. 462.) The court went on to hold that "since disability pay serves primarily to compensate the disabled spouse for current suffering and lost earning capacity, we conclude that only such payments as are received during the marriage constitute a community asset. The disabled spouse's right to payments subsequent to dissolution is his separate and personal right." (Id. at p. 464.)