Legal Question in Family Law in California
Home Purchase with Spouse's Gifted Money.
My spouses mother wishes to give her a house (worth approx $400,000) with the intent of us selling it a few years later in order to help us buy a a more expensive home together (worth approx. $700,000). The gift money will be used for the down payment (approx $200,000) and the rest will go into our joint account to help with living expenses and to pay off the mortgage.
My mother-in-law wants to put only my spouse's name on the title as a precaution in the event that we divorce a few years later, so their family would retain the property.
Question is, after we sell the gifted house, and we use the profit to fund our new house together in this way, with both of us on the title, am I entitled to equal part in equity and the property value if we ever got a divorce, or would I only have stake in the money that we pay off on the principle of the loan plus appreciation?
I understand her desire to protect their estate, but I am concerned about how a deal like this could impact me and my investment in the long term if a divorce ever occurs.
1 Answer from Attorneys
Re: Home Purchase with Spouse's Gifted Money.
"...would I only have stake in the money that we pay off on the principle of the loan plus appreciation?"
This is actually closer to the probable correct answer. Of course you'd only be entitled to half the appreciation based on the amount of principal actually paid with community funds as oppose to that paid with the separate gift given to your spouse--and that's not etched in stone.
If you'd like a more detailed and specific answer to this question, contact my office and request an opinion letter on this issue.
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