Key v. Key

BARNARD, P. J. This is an appeal from an interlocutory decree of divorce. The parties were married in 1941. Prior to the marriage the plaintiff owned a small house and lot, and another lot. In 1943, the parties acquired, as joint tenants, the premises involved in this action known as 9561 South Shaffer Street, Orange, California. This property was vacant and they paid $1,500 for it, only $300 being paid down. Thereafter, they built a small house on the premises, building first a “shell” and later improving it as they were able to do so. Old material was largely used and the parties did much of the work themselves. During this time the plaintiff sold the properties which she had owned before the marriage for $2,800 and part of the proceeds were used in paying for and improving the Shaffer Street property. Each of the parties worked outside and their earnings, and the monies received from the sale of the plaintiff’s other properties, were put in a [279]joint account in the bank, and used in part in paying for and improving the Shaffer Street property.

Early in 1949 the plaintiff brought this action for divorce against the defendant. Thereafter, on March 15, 1949, while they were living separate and apart they entered into a property settlement agreement. This agreement recites that it is the desire of the parties to finally determine their property rights, and states that each party waives and releases as to and against the other all right to support, alimony, or suit money in any action that may then or later be pending, to any property or earnings possessed or acquired by the other, or to inherit from or make any claim in or under the estate of the other. It then provides that the defendant “grants, assigns and releases to the wife as her separate property” the real property here in question, together with the household furniture and certain separate property; and that the plaintiff “grants, assigns and releases to the husband as his separate property” certain enumerated personal property. The agreement then contains this paragraph:

“It is understood and agreed that this agreement is made by the husband and wife while living separate and apart and is executed in consideration of the mutual covenants herein contained and for the purpose of finally adjusting and settling all rights, present and future, including property rights or rights of the wife to support and maintenance and any other rights of whatsoever kind or nature arising out of the marital status of husband and wife irrespective of whether there may be a subsequent reconciliation, suit for separate maintenance or divorce. Specifically recognizing the possibility of a future reconciliation, the parties declare their intention to be that a reconciliation, either temporary or permanent, or a restoration of the former relations of said parties or a further separation, temporary or permanent, after any reconciliation, shall not render this agreement or any portion thereof invalid, inoperative, rescinded or revoked.”