Smith v. Smith CA2/6

Filed 9/15/25 Smith v. Smith CA2/6 NOT TO BE PUBLISHED IN THE OFFICIAL REPORTS California Rules of Court, rule 8.1115(a), prohibits courts and parties from citing or relying on opinions not certified for publication or ordered published, except as specified by rule 8.1115(b). This opinion has not been certified for publication or ordered published for purposes of rule 8.1115.

IN THE COURT OF APPEAL OF THE STATE OF CALIFORNIA

SECOND APPELLATE DISTRICT

DIVISION SIX

CHRISTIAN SMITH, 2d Civ. No. B337418 (Super. Ct. No. 20FL-0554) Appellant, (San Luis Obispo County)

v.

MEGAN SMITH,

Respondent.

Christian Smith appeals from a judgment dividing the community estate. Christian1 contends the family court erred when it failed to equally divide community property by imposing sanctions under Family Code section 1101, subdivisions (g) and (h) for his breach of fiduciary duty. We will affirm.

1 We refer to the parties by their first names for ease of

reference.

FACTUAL AND PROCEDURAL BACKGROUND Christian worked for his family’s company while Megan raised their three children at home. Christian’s parents contributed to the marital standard of living. They provided $125,000 for the down payment on the parties’ home. The parties also used company funds for a home remodeling project and used a company credit card for everyday expenses. Near the time of the down payment, Christian’s parents reported gifts totaling $123,884 on their tax returns. They were not on title to the parties’ home. No written agreements exist about the nature of these funds. Christian’s parents did not know of or authorize the use of company funds for the home remodeling. Like the down payment funds, no written agreements existed regarding the credit card charges, and Christian’s parents did not speak to Megan about these funds. Christian told Megan he wanted a divorce in late July 2020. He told her they would need to repay his parents for the down payment, credit card charges, and remodeling funds. A notary arrived at their home the next day with loan documents. Megan said she did not want to sign the loan documents after being notified of the divorce and that she did not believe they owed Christian’s parents this money. Christian told Megan they would need to sell the home if she did not sign. One of the children overheard this and began crying. Feeling pressured, Megan signed the loan documents, which included a deed of trust on the home securing the loan. Megan did not receive copies of the documents she signed. She did not understand they were borrowing $155,000 at an interest rate of 10 percent. Christian told Megan he used $125,000 of the $155,000 loan proceeds to pay his parents back.