Legal Question in Family Law in California
I bought a condo in California last year, 2013, and had my wife sign a Quit Claim Deed. Title states: my sole and separate property. We are now in the process of a divorce. QUESTION - In CA divorce, is the Quit Claim effective absolutely in preventing my wife from claiming my condo. If no, why so?
2 Answers from Attorneys
First of all, if community property (such as earnings from either party during the marriage) were used to pay down an encumbrance, then the community aquired a pro tanto interest (meaning for that amount) in the separate property. There is a rule of reimbursement for improvements as well.
Second, a quit claim deed from one spouse to another may trigger a presumption of undue influence that the recipient spouse must prove away.
Mr. Roach is basically correct, though his answer is a bit hard to follow even for me. So let me try to clarify.
The answer is "no," because the law disfavors one spouse taking advantage of the other spouse, and for that reason, the mere fact that one spouse signed a deed to the other is not conclusive proof that it is separate property. In addition to the deed, the spouse who claims the property is their sole and separate property must show either a) that the property was acquired only with assets that were separate property to begin with, e.g., inheritance money or pre-marriage earnings/savings; or b) that there was an express intent and agreement with full knowledge and consent to make a gift of community property from both spouses to the spouse who claims the property is now separate property. Having done the transaction so close in time to a divorce, there is also a presumption, as Mr. Roach mentioned, that you used improper means such as undue influence to get your wife to sign the deed; or at least that it was done without fully informed knowledge and consent to what she was doing.
Lastly, as he mentions without explaining, if you took out a mortgage and paid the loan payments out of current earnings from when you bought it to now, or if you spent current income or community assets on any other payments that benefited the property, even if the property is found to be your sole and separate property, you would have given the community an interest in the property to the extent of the community funds that went into the property after you bought it.