Legal Question in Family Law in California
value of home
I purchased a home prior to marrage-paid $40,000. Just had a retro appraisal done to date of marrage, came out at $111,000. Is the 111,000 my equity basis on the house or do I subtract the mortgage balance due at that time?
Thank you,
1 Answer from Attorneys
Re: value of home
You don't give a context for your question, but I will assume you are asking what your separate property (SP) interest will be in the home if you divorce. Your SP interest will include your downpayment, if any, 100% of the equity gained prior to marriage, and a percentage of the equity gained after marriage and before date of separation. The latter percentage will relate to the paydown on the mortgage during marriage, but it is not simply equity minus mortgage. The community actually gains an interest in the equity by virtue of mortgage payments made with community funds. This is a rather complicated formula based on case law. You should consult with an attorney.
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