Legal Question in Family Law in California
My wife bought the home 4 years prior to us being married. The house/deed has always been in her name only. I have been the sole financial provider for most of our 7 year marriage always paying the mortgage. I have also extensively remodeled our home myself. Is the house now considered community property due to comingling? How do the courts typically divide this up? I read that typically she would get her down payment back and the equity would be divided up based on who paid what monies towards the mortgage.
1 Answer from Attorneys
Not exactly. It is a separate property home of your wife, with a portional community property interest. The valuation is controled by In re Marriage of Moore (1980) 28 Cal.3d 366. The community establishes a proportional ownership interest to the extent that the mortgage payments reduce the principal debt. You should be made aware that in Moore, the possibility was left open that under certain circumstances, the community could be considered to be making a gift to the separate property spouse. That result has not been set in stone yet, and has been rejected by at least one Court of Appeal. (Marriage of Gowdy (1986) 178 Cal.App.3d 1228.)
She doesn't get her downpayment back. Improvements to the home, at best, give rise to a claim for reimbursement. A gift is presumed when one spouse uses community funds to improve the other spouse's separate property. It can only be overcome by evidence of an agreement to reimburse. (Warren v. Warren (1972) 28 Cal.App.3d 777.)