CALIFORNIA FAMILY LAW
...Family Residence/Real Property
......Division
.........Notes to Equalize
8 Cards On This Topic:

Use of promissory note between spouses to equalize division of family residence.

Use of note to equalize division of c/p is not taxable event.

If note given to equalize division of c/p, fair market value of note must equal amount necessary to equalize.

W should not be made "unwilling home financer." (7% long-term note improper.)

Five-year promissory note at 10% approved.

Short-term note at below market interest approved.

Three-year 10% note secured by second deed of trust approved.

Note given to equalize division of c/p between spouses not purchase money note; therefore, payor's default may give rise to deficiency judgment.