Legal Question in Family Law in California

1. I bought a house in CA before marrige. Only my name is on the house and I pay the mortgage. After marrige, we are living together for 4 yrs. No childeren. The house is upside down and no equity is in the house. She has not contributed any money to the house (e.g. improvements, property tax, HOA...and etc) after marrige. Is she entitled to the house that I have before marrige? If we were married for over ten yrs, will the result be the same?

2. I am thinking about buying another house in CA. She does not want her name on the house and does not want her name on the mortgage. SHe will not pay any mortgage and other expesne (e.g. property tax & asso. ) I think my credit and income is strong enough to make pruchase. If divorce, is she entitled to the house? How can I protect my investment in case of divorce?

Thanks


Asked on 3/01/12, 12:23 pm

2 Answers from Attorneys

Anthony Roach Law Office of Anthony A. Roach

1. The house is separate property, as long as the payment used to make the mortgage payments is separate property. Income that you earn during marriage is not separate property, but rather community property, despite that the paycheck is in your name. If income during marriage is being used to pay the mortgage payments, then the community would acquire a pro tanto interest to the extent that the payments reduced the principal. The length of the marriage is irrelevant to determinations of community/ separate property, other than amounts.

2. When acquiring property during marriage that you want to keep separate, you must purchase that property with separate property funds that you can trace to a separate property fund. Keep it titled in your name, and have her sign a transmutation and any necessary quitclaim deeds that a title company requires. Do not commingle assets or use community funds to pay the mortgage or for any improvements.

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Answered on 3/01/12, 12:54 pm

1. Probably. You say you have been paying for the house during the marriage, but were you paying with income earned during the marriage? If so, then the community has an interest in the property. The number of years is irrelevant. It's a question of how much money went into the value of the house that was income earned during the marriage. If the house has no equity, however, it is all irrelevant.

2. The answer is the same as #1. If money earned during the marriage goes into the new house, she gets a share. The exact share would have to be calculated at the time of divorce. The only way to have the new house be yours clear of any community property claim would be a carefully drafted post-nuptual agreement in which she agreed to give up her right to the community property income that you put into the house. Why she would agree to that, I don't know, but if she signed such an agreement and it was properly drafted, it would make the new house your separate property.

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Answered on 3/01/12, 12:55 pm


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