BILL NUMBER: SB 357	CHAPTERED  07/13/99

	CHAPTER   118
	FILED WITH SECRETARY OF STATE   JULY 13, 1999
	APPROVED BY GOVERNOR   JULY 13, 1999
	PASSED THE ASSEMBLY   JULY 1, 1999
	PASSED THE SENATE   APRIL 5, 1999
	AMENDED IN SENATE   MARCH 18, 1999

INTRODUCED BY   Senator Ortiz

                        FEBRUARY 10, 1999

   An act to amend Section 2040 of the Family Code, relating to
dissolution of marriage.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 357, Ortiz.  Dissolution of marriage:  attorneys' fees.
   Existing law requires, upon the commencement of proceedings for
dissolution or nullity of marriage or legal separation of the
parties, that the summons contain a temporary restraining order
restraining both parties from, among other things, transferring,
encumbering, hypothecating, concealing, or otherwise disposing of any
property, except as specified.  This restraining order, however,
does not preclude the use of community property for the payment of
fees  to retain an attorney in the proceeding.
   This bill would provide that the restraining order also does not
preclude the use of quasi-community property or a party's own
separate property for the payment of fees and costs to retain an
attorney in the proceeding ; but would require that any party who
uses community or quasi-community property or the other party's
separate property for that purpose shall account to the community or
the other party for that use.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:


  SECTION 1.  Section 2040 of the Family Code is amended to read:
   2040.  (a) In addition to the contents required by Section 412.20
of the Code of Civil Procedure, the summons shall contain a temporary
restraining order:
   (1) Restraining both parties from removing the minor child or
children of the parties, if any, from the state without the prior
written consent of the other party or an order of the court.
   (2) Restraining both parties from transferring, encumbering,
hypothecating, concealing, or in any way disposing of any property,
real or personal, whether community, quasi-community, or separate,
without the written consent of the other party or an order of the
court, except in the usual course of business or for the necessities
of life and requiring each party to notify the other party of any
proposed extraordinary expenditures at least five business days
before incurring those expenditures and to account to the court for
all extraordinary expenditures made after service of the summons on
that party.
   Notwithstanding the foregoing, nothing in the restraining order
shall preclude a party from using community property, quasi-community
property, or the party's own separate property to pay reasonable
attorney's fees and costs in order to retain legal counsel  in the
proceeding.  A party who uses community property or quasi-community
property to pay his or her attorney's retainer for fees and costs
under this provision shall account to the community for the use of
the property.  A party who uses other property that is subsequently
determined to be the separate property of the other party to pay his
or her attorney's retainer for fees and costs under this provision
shall account to the other party for the use of the property.
   (3) Restraining both parties from cashing, borrowing against,
canceling, transferring, disposing of, or changing the beneficiaries
of any insurance or other coverage, including life, health,
automobile, and disability held for the benefit of the parties and
their child or children for whom support may be ordered.
   (b) In all actions filed on and after January 1, 1995, the summons
shall contain the following notice:
   "WARNING:  California law provides that, for purposes of division
of property upon dissolution of marriage or legal separation,
property acquired by the parties during marriage in joint form is
presumed to be community property.  If either party to this action
should die before the jointly held community property is divided, the
language of how title is held in the deed (i.e., joint tenancy,
tenants in common, or community property) will be controlling and not
the community property presumption.  You should consult your
attorney if you want the community property presumption to be written
into the recorded title to the property."