Jonas is a successful investment banker who earns $400,000 per year.He marries Penny,a nurse at a county hospital.At the time of their marriage,Jonas owns real estate worth $1 million and securities worth $1.5 million,while Penny has no savings or property.After four years,Jonas and Penny opt for a divorce.Over the four years of their marriage,Jonas earns $400,000 in the first two years and $500,000 in the remaining two.Penny earns $25,000 in the first three years and $150,000 in the final year of their marriage.Their living expenses were $130,000 per year,and they have $1,450,000 of their earnings saved in a bank account.During the marriage,Jonas's real estate increases in value to $1.5 million,and his securities increase in value to $3 million.If they file for divorce in a state that recognizes community property,what amount would each receive?

Question

Quizplus · Accepted Answer

In a community property state, all earnings and accumulations during the marriage are divided equally. The total earnings during the marriage were $1,850,000 ($1,800,000 from Jonas and $200,000 from Penny). After living expenses of $520,000, they saved $1,450,000. This amount is divided equally, giving each $725,000. Jonas's pre-marriage assets and their appreciation remain his separate property.

Jonas Is a Successful Investment Banker Who Earns $400,000 Per