Legal Question in Family Law in California

Re: Gift of money as community or separate property

As long as the money can be traced back to a gift (gifts are seperate property) she would be entitled to her contribution back.

Re: Gift of money as community or separate property

Unfortunately, I can not tell you Yes or No, your son in law will never be able to touch the 50K that you give your daughter to purchase a home. What I can tell you is that originally the 50K will be separate property, and that portion of the home will be separate property. The problem is that it is easy for it to "become" community property and years later he will be able to claim the portion as community property.

However, there is a way to protect your daughter's interest. Your daughter and her husband can basically, in writing, agree that the 50K and the interest of the house that the 50K buys, is and will forever be seperate property. Its a kind of a "post nuptial" agreement.

Its been my experience that the husband is usually more agreeable to sign the agreement when the gift is conditioned upon the signing of the agreement, and the request is made by you (the in-law) for the agreement rather than your daughter (his spouse). That way he gets what he wants, (the house), and your daugther does not look like the untrusting one who wants the agreement. It may put a strain on your relationship with him but my experience has shown that it does not last to long when the couple is handed the keys to their new home that you just made possible.

As far as the agreement goes, I recommend that you use an attorney to draft the documents so that there are no "loopholes" for the husband to find later.

If you want to discuss the matter, I would be speak with you in greater detail about drafting the agreement.

Michael D. Burt

(213) 384-2220