Legal Question in Family Law in California

Moore-Marsden & Transmutation Requirements

Facts:

Wife owns residential rental property prior to

marriage

Title remains in Wife's name all during marriage

Only a single joint bank account maintained during marriage

Funds from all sources and all expenses were paid from the joint checking account with no mention or attempt to segregate separate property

All payments of rental property mortgage for the entire marriage were paid from the joint bank account

Marriage lasted 19 years

Question:

Assuming all mortgage payments made from community property - Does the community gain an interest in the appreciation of the rental property computed according to Moore-Marsden formula, by virtue of having made the payments on the mortgage from community funds during marriage even though title was never changed ?

(i.e Does there have to ba a transmutation of the property in order to have an interest in the appreciation ?)

OR:

Is the community limited to only a reimbursement of the principal payments on the loan ( loan paydown )


Asked on 10/25/01, 11:49 pm

1 Answer from Attorneys
Matthew Kremer Law Offices of Matthew M. Kremer

Re: Moore-Marsden & Transmutation Requirements

There is no transmutation, since such would have to have been express, in writing, and signed by you if occuring after 1-1-85.

Moore/Marsden would apply. However, there is still the issue of use of the rental income. It would be presumed that c/p funds were only used to the extent necessary to make up for the negative on the rental debt service.

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Answered on 11/22/01, 3:14 pm


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