Gudelj v. Gudelj
Supreme Court of California
259 P.2d 656 (1953)
John Gudelj (defendant), married to Catherine (plaintiff), used proceeds from dissolving his separately owned business, Owl Cleaners, plus a $1,500 cash payment and a $10,000 promissory note, to buy a one-quarter interest in Helene French Cleaners during the marriage. Although John had enough separate property (from the Owl Cleaners dissolution and a separate real estate sale) to cover the full purchase price, the seller who extended the $10,000 credit was unaware of John's separate-property ownership when making the loan. The trial court found the entire Helene French Cleaners interest was John's separate property, and Catherine appealed.
Whether an asset purchased during marriage partly on credit extended to only one spouse is considered that spouse's separate property.