Hi, My husband and I have been married for 1 year. I owed 75,000 on my property when we got married. The house is worth around 160,000. Over the past year of our marriage I put some money towards the principal from an IRA account and he put money towards the principal. We currently owe 37,000. He opened up a separate account to pay down the principal over the next year even though we not get along and talk about divorce. Would I have to split my house with him in the event of a divorce?
2 Answers from Attorneys
There is a formula for determining the community property interest in a separate property house to which community property money has been applied to pay down the principal. It depends on how much the principal has been paid down as well as the value of the house.
Ms. Healy is correct. It does not become community property to be split 50/50, based on the events you describe, but the community and possibly his separate property account would be entitled to reimbursement in the property division of a divorce.