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Marriage of Valli

Supreme Court of California
324 P.3d 274 (2014)


Facts

Frankie Valli and Randy Valli were married. Frankie bought a $3.75 million life insurance policy with community funds. The policy named Randy as the sole beneficiary. The Vallis separated. During the dissolution proceeding, Randy claimed that the life insurance policy was her separate property. She argued that because the insurance policy transaction was not interspousal but was between Frankie and the insurance company, California’s transmutation statutes did not apply. The trial court held that the life insurance policy was community property because under the transmutation statutes, Frankie never gave up his interest in the policy that was community property because it was purchased with community funds. The court of appeal reversed, finding that the statutory requirements of transmutation did not apply, because the life insurance transaction was not interspousal. Frankie appealed.

Rule of Law

Issue

Holding and Reasoning (Kennard, J.)

Concurrence (Chin, J.)

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