§4.02 Income Resulting From Spouse's Community Efforts

Income arising from a spouse's skill, efforts, and industry during marriage is community property, even if the efforts are devoted to separate property. Thus, the community should receive a fair share of the profits that derive from a spouse's devotion of more than minimal time and effort to the handling of his or her separate property. You must allocate profits not only when the spouse conducts a commercial enterprise but also when he or she invests separate funds in real estate or securities. [Beam v Bank of America (1971) 6 C3d 12, 17.] For methods of allocation, see §4.03.