Legal Question in Family Law in California
A California man purchases a house for $500,000, putting $100,000 down in cash and borrowing $400,000 via a purchase money mortgage. The man marries one month later and immediately refinances the home, borrowing the remaining $100,000 via a second mortgage taken in his sole name. Upon dissolution of marriage, what is the man's separate property interest in the home, if its fair market value at trial is $750,000?
2 Answers from Attorneys
The man lost any purchase money mortgage protection when he refinanced, so it is not a purchase money mortgage anymore.
You don't provide enough information, such as whether community property was used to pay down the mortgage, and your reference to the remaining $100,000 via a second mortgage is ambiguous.
You need to get your own copy of CFLR Dissomaster Suite, and run the Moore/Marsden worksheet in the Propertizer program. You also need to clarify whether the man actually refinanced the $400k as well as taking out a $100k second, or only took out a new $100k second after the marriage. Whether the man borrowed $500k post-marrige, or $400k pre-marriage and $100k post-marriage, will have a significant effect on the outcome of the worksheet.
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