Legal Question in Family Law in California

In California one spouse inherited $100,000 during marriage. He took that money and used it to renovate their house owned jointly (the house is Community Property). They are now divorcing. Does the spouse still have Separate property from the inheritance or did it become Community Property when he invested it in the house?


Asked on 12/05/10, 6:23 pm

2 Answers from Attorneys

That is a very tricky and often litigated issue. It will depend on whether there was an intent at the time to make a gift to the community. If so, no reimbursement or credit. If not, then he is entitled to a reimbursement from the community for the value he contributed to the property. In the case of real property improvements they rarely increase the value by the amount paid, so there will have to be an expert opinion as to how much the house was worth before and after the renovations.

Read more
Answered on 12/11/10, 4:43 pm
Anthony Roach Law Office of Anthony A. Roach

Mr. McCormick's analysis applies to situations where community property is used to improve separate property. Your question is different, and involves separate property being used to enhance community property. It is governed by Family Code section 2640.

"In the division of the community estate under this division, unless a party has made a written waiver of the right to reimbursement or has signed a writing that has the effect of a waiver, the party shall be reimbursed for the party's contributions to the acquisition of property of the community property estate to the extent the party traces the contributions to a separate property source. The amount reimbursed shall be without interest or adjustment for change in monetary values and may not exceed the value of hte property at the time of the division." (Fam. Code, sect 2640 subd. (b).)

"Contributions to the acquisition of property" are defined in subdivision a of Family Code section 2640, and include "payments for improvements."

It does not depend on intent to make a gift or any other nonsense. The issue here is whether the spouse contributing the separate property to improvements can trace that to a separate property source and did not waive the right to reimbursement in writing.

Read more
Answered on 12/14/10, 1:14 pm


Related Questions & Answers

More Family Law, Divorce, Child Custody and Adoption questions and answers in California