## Facts

- Wife petitioned for dissolution in March 1980; judgment dissolving the marriage was entered November 25, 1981 after trial on property and support.
- Husband was insured under two $10,000 term life-insurance policies (one through the Veterans Administration and one through employment).
- The trial court found the life-insurance policies on husband’s life had no cash value.
- Husband testified he had accrued 120 hours of vacation time but would not be paid for unused vacation time.
- Wife appealed rulings on (1) the life-insurance policies, (2) spousal support, and (3) accrued vacation benefits.

## Issues

1. Whether term life-insurance policies with no cash surrender value constitute divisible community property at dissolution.
2. Whether accrued vacation hours are divisible community property when the employee has no right to cash payment for unused time.
3. Whether the spousal-support award constituted an abuse of discretion.

## Decision

- The judgment was affirmed.
- The term life-insurance policies were not divisible community property at dissolution because they had no present economic value (no cash value and no currently payable benefits).
- The accrued vacation hours were not a divisible community asset on this record because they were not payable in cash if unused and lacked property-like attributes.
- The spousal-support award was upheld because the trial court did not abuse its discretion.

## Legal Principles

- Not every marital interest acquired during marriage qualifies as “property” for community property division; the interest must be susceptible of common ownership, transfer, and survival as an economic right.
- Term life-insurance policies generally have no divisible present value at dissolution when they have no cash surrender value and benefits are only contingent; any community interest typically concerns proceeds payable upon death to the extent premiums were paid with community funds.
- Accrued vacation time is not divisible community property absent evidence of a vested right to cash payment (e.g., a contractual or statutory entitlement to payout); “use it or lose it” vacation that is nontransferable and nonpayable in cash need not be valued or divided.
- Spousal-support orders are reviewed for abuse of discretion and will be affirmed absent a showing the trial court acted arbitrarily or outside the bounds of reason.

## Conclusion

The court affirmed the dissolution judgment, holding that non-cash-value term life-insurance policies and nonpayable accrued vacation time were not divisible community assets on the record presented, and that the spousal-support award fell within the trial court’s discretion.


In re Marriage of Lorenz, 146 Cal. App. 3d 464 (Cal. Ct. App. 1983)