Legal Question in Family Law in California

What Constitutes Community Property?

When I married my present wife I already owned my home in my name. There was no prenuptial agreement. My wife agreed orally that she would not make any claims to my house. In recent years she has asked me to include her name on the deed in case something 'happens' to me. She is afraid that my children from a previous marriage will claim my home. She has never made any property payments and paid property taxes. When I allowed two children to move in with us I asked her to help pay some of the utilities (gas-water-electric-phone). Over the years she has made improvements to the house to suit her tastes. She changed the carpets, drapes, remodeled the kitchen and put marble floor. In total she invested about $20,000. I said I would reimburse her when I sold the home. My wife has never worked since we married. Her father in Taiwan and sends her money to defray living costs in America and mostly because one of her daughters is his favorite grandaughter. My wife believes her investment in remodeling entitles her to be added to the deed. The house was paid off in Nov. 1998 prior to me going in for major surgery.

My question, Under California Law - Community Property state - is she entitled to any portion of my home?


Asked on 7/08/99, 10:49 am

2 Answers from Attorneys

Ken Koury Kenneth P. Koury, Esq.

Re: What Constitutes Community Property?

Community property is property that is accumulated during the marriage. Property owned before the marriage is not community property. If house payments were made by either of you with community income during the marriage then she may have a claim against the house to the extent that her share of community income was used. Advice: do not put her name on the house. There are other ways to protect both her and your kids. You need to see an estate planning attorney.

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Answered on 7/10/99, 2:40 pm
Matthew Kremer Law Offices of Matthew M. Kremer

Re: What Constitutes Community Property?

The previous answer was accurate as far as it went. If you used community funds (ie:earnings) to pay down the mortgage, the amount that went to principal (not interest) may be considered in calculating a community interest. This is known as the Moore/Marsden formula.

Your wife's investment of separate property (gift from father?) into the improvement of the residence is more problematital. What was her intent? Gift? Investment?

This is quite different from using separate property money on community asset. That is reimbursable, by law. Where community or separate property is used to enhance one party's separate property (your house), the case law indicates that there is no reimbursment or reimbursement limited to the actual increase in value attributed to the investment.

Don't put her name on deed. However, if you do, you should indicate that you retain all separate property rights. AT least this should give you the right to claim the equity as of the date you put her name on the deed, as your separate property.

See an attorney.

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Answered on 7/11/99, 8:59 pm


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