Legal Question in Real Estate Law in California

Real Estate Investing w/o Spouse

I live in California I want to invest in residential real estate w/o my wife in Michigan and she refuse to sign a form stating that the property in Michigan is my sole & seperate property, is there another way of doing it?


Asked on 5/16/08, 4:16 pm

2 Answers from Attorneys

Mitchell Roth MW Roth, Professional Law Corporation

Re: Real Estate Investing w/o Spouse

Yes. If you have separate assets, use only separate assets. Only earnings from labor during marriage are community property by law. The rest is by agreement. So if you segregate and keep your separate property separate, and use only separate property to pay taxes, etc. the community will not acquire an interest in the separate property.

The other approach I recommend is to confront the issue head on and negotiate an antenuptual agreement. If you can't come to agreement on the financial a property issues now, maybe you should not be married to each other.

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Answered on 5/18/08, 9:56 am
Bryan Whipple Bryan R. R. Whipple, Attorney at Law

Re: Real Estate Investing w/o Spouse

Maybe she's refusing to sign because the property in Michigan ISN'T you sole and separate property. By the way, juste because the property is not in California does not make it so....we have a concept called "quasi-community property" under which out-of-state property which would be community property if within California is treated as community property but called "quasi-." The legal effect is nearly the same.

The Michigan property could be your sole and separate property if:

(1) you acquired full title to it before marriage;

(2) you inherited it, or got it as a gift to you;

(3) you bought it with cash that was 100% yours.

On the other hand, if you bought it while married with funds that can in any way be traced to community funds or community income, including your pay while married, she's right.

If you don't already have the Michigan property, but are only just now thinking about buying there, your list of possibilities narrows further, as #1 disappears and doing #3 is only a remote possibility if you've been married any time at all.

You need to consult a California family-law attorney; take my answers to your two questions with you and see what he/she thinks are your options. If your wife is uncooperative, I think you are very close to out of luck on doing a separate, financially-insulated out-of-state real estate investment business.

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Answered on 5/16/08, 5:14 pm


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