Marriage of Tammen
Court of Appeal of California
63 Cal. App. 3d 927 (1976)
Richard Tammen (defendant) and Elizabeth Tammen (plaintiff) divorced, and the trial court's division of community property gave Elizabeth about 79% of the estate. To equalize the split, the court ordered Elizabeth to sign Richard a promissory note for $19,820.80, secured by a trust deed on the family home that Elizabeth was awarded. The note, however, would not become payable for up to ten years, or until Elizabeth remarried, sold or refinanced the home, moved out, or died, whichever came first, and it was also subject to another creditor's $18,497.12 lien on the same property. Richard appealed, arguing the note's real value was far less than the amount it was supposed to represent.
Whether a promissory note used to secure an equalizing payment in a community-property division must have a market value equal to the payment owed.