This section contains the nature of the case and procedural background.

After a 20-year marriage, H and W were separated in September 2004. In March 2003, H used community property to buy a $ 3.75 million insurance policy on his life, naming W as the sole owner and beneficiary. Until the parties separated, the policy premiums were likewise paid with community property funds from a joint bank account. W testified that she and H, while he was in the hospital for “heart problems,” had talked about buying a life insurance policy. H and their business manager, Barry Siegel, told W that they would make her the policy's owner. H testified that she would take care and give to the kids what they might have coming” and that he had no plans to separate from W when he bought the policy. The trial court ruled that the insurance policy was community property. The court awarded the policy to H and ordered him to buy out W's interest in the policy by paying her $182,500, representing one-half of the policy's cash value. The Court of Appeal reversed, holding that the insurance policy was W's separate property. This appeal resulted.

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