-14- income tax attributable to the portion of the jury award she incorrectly excluded from income. Accordingly, we conclude that the accuracy-related penalty applies to that portion. V. Whether The Jury Award Is Community Property We finally consider whether the jury award is community property under California law, an issue that respondent raised for the first time after petitioner filed the petition. Married persons residing in California generally have a one-half interest in all property acquired during their marriage. Cal. Fam. Code sec. 760 (West 2004). Spouses residing in California filing separate returns generally must each report on the returns one- half of all income the married couple earned during the year. United States v. Mitchell, 403 U.S. 190, 196-197 (1971). A legal award is community property if it is in satisfaction of a personal injury claim and if the cause of action arose during the marriage. Cal. Fam. Code sec. 780 (West 2006). A legal award is separate property only if it is in satisfaction of a personal injury claim and if the cause of action arose after the spouses were separated or divorced or while they were living apart. Cal. Fam. Code sec. 781 (West 2006). A personal injury claim arises from any tortious injury to a protected personal interest. In re Marriage of Klug, 130 Cal. App. 4th 1389, 1397 n.3 (Ct. App. 2005) (finding legal malpractice a personal injury claim).Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 Next
Last modified: May 25, 2011