Legal Question in Family Law in California
My wife and I purchased a house with all of the down payment money coming from money I had received from a previous marriage. The money was the pay off from my first wife for half of the value of the house we had owned at the time of divorce. My question is: Is the house that my present wife and I own, that the down payment $120,000 came from my first marriage buyout. Is the house considered separate property? or would my present wife be entitled to half of what the equity is in the house?
3 Answers from Attorneys
When was the house purchased? How is title held? Is the property subject to a mortgage or deed of trust? Where does the money come from that is used to pay the mortgage and improvements?
Since the down payment is from your previous marriage, the house will be considered your separate property. However, if you have mortgage that you have paid down with your income, your wife will have some interest. The court will use a formula that is has been used from the 1960's (marrige of Moore) to calculate how much your wife will get.
Neither of the previous answers is correct. Unless there is a manifest intention to make a gift to the community, your down payment becomes a separate property credit in the event of a divorce from this wife if you took title to the new house in anything but your name as sole and separate property. If you did take title to the new house in your name as sole and separate property, then the community will be entitled to a credit for all payments of community funds that reduce the principal debt on the property or increase the value (such as improvements or addititions).