Legal Question in Family Law in California
community property laws
I have asked this before and get muddled answers. I am sure that there is family law that will SPECIFICALLY ANSWER the question and state the likely result of the scenario below.
husband purchases personal home 1984
husband creates corporation, 100% shareholder 1986
husband creates personal trust 1992
husband places personal home in trust 1992
corp. buys rental property #1 1997
husband marries wife 1999
personal home in trust is sold 2003
new personal home purchased,in trust, w/ENTIRE proceeds 2003
trust buys rental property #2 2003
wife has affair, couple separates 2004
every dollar of expenditure for the trust held personal home and the trust held rental #1, came from a trust checking account in the sole name of the husband. every dollar of expenditure for the corp. rental #2 came from a corp. checking account in the sole name of the corp.
for simplicity:
from 1999 to 2004, the value of personal house(s) +500K
from 1999 to 2004, value of rental house #1 +250K
from 2003 to 2004, value of rental house #2 +150K
does community property law trump the fact that all properties were held separately for 100% of the marriage period? what possible claim can wife have?
3 Answers from Attorneys
Reply: community property laws
In a general sense, the increase in value of the marital residence which was acquired prior to the marriage and paid for to some extent during the marriage is based upon a "Moore\Marsden" Calculation. The affair has nothing to do with anything. The new home appears to have been purchased during the marriage so it is community property subject to reimbursement to separate property down payment (Family Cide section 2640).
For a specific opinion regarding your individual circumstances, I suggest that you consult with an experienced family law lawyer. Experience is not expensive, it's priceless!
You will find some valuable information on various California family law issues by visiting my web site.
Good luck to you!
Brian Levy, Esq.
www.calattorney.com
Re: community property laws
She may make any claim she wants to and the matter may have to go to trial. For example she can claim that the corporation was successful in part due to her mere contribution as being a supportive wife. You will need representation. Call me directly at 16192223504.
Re: community property laws
Both lawyers are correct. Had you not incorporated and instead kept a seperate trust, and used only seperate money that was not derived from corporate income for the purchases, nor used your wife's credit or income at all, you would have nothing but seperate property. However, the community is entitled to it's share of income earned from the corporation, or the increase in value of the corporation, for the percentage of time you were married based upon case law. Too complicated to discuss on here. Are you in the process of and/or contemplating divorce?
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