Legal Question in Family Law in California

Cash out from re-fi, who gets it?
I've been seperated since 1999 and making 100% of mortgage and tax payments on our home since my ex moved out. Back in 2004 my ex and I agreed to fix up the house for sale, and did a cash out refi for $60K which went into a joint account. The house needs a new roof and foundation work. We had a notarized letter saying that the money was for this specific reason. The previous loan balance was $250K and the now it was $310K, with higher monthly payments. Our three school-aged kids didn't like the idea of moving, so instead of fixing the house up in 2005 I made an offer to buy him out for $790K (my appraisal). He got his own appraisal for $870K. We agreed to split the difference and valued the house at $830, less a $20K credit for the roof, etc. His share of the equity, less the credit is $240, but he is also claiming 1/2 of the $60K from previous refi. I don't believe that he is entitled to the money since I had to repay 100% of the $310K loan in order to transfer title. I never would have done the cash out in 2004 if I had known he would have a claim to it. Who's right?

Asked on 7/28/05, 2:07 pm

Lyle Johnson Bedi and Johnson Attorneys at Law

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Re: Cash out from re-fi, who gets it?

You are correct. The cash out from the refi belongs to you as you are paying the loan.

Answered on 7/28/05, 6:26 pm

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