Fraud on the Community

Fraud on the Community

Definition

A judicially created doctrine based on the theory of constructive fraud. Fraud on the community is presumed if one spouse disposes of the other spouse’s one-half interest in community property without both spouses’ knowledge and consent. This presumption may be rebutted by the donee of community property if she shows that she had a special relationship with the donor, the gift was justified, and the gift of community funds was reasonable in relation to the remaining community assets.

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