Legal Question in Real Estate Law in California

Re: Buying out an ex-spouse

You were entitled to the write-off on the taxes, but if you were living in the house, whether or not to deduct the entire mortgage may depend upon the fair rental value. Call me directly at 6192223504.

Re: Buying out an ex-spouse

If you are equal co-owners as tenants in common or joint tenants, and each contributed equally to the down-payment, each is entitled to 1/2 of the net equity upon sale, except as modified by the divorce decree or any other contract between you; however, you are entitled to reimbursement for your excess contributions (above 1/2) to necessary costs of ownership such as mortgage payments, property taxes, insurance and necessary repairs and maintenance. As for voluntary repairs, maintenance and improvements, reimbursement of an excess money contribution would depend upon a prior agreement that the improvement would be made.

The ex-spouse in possession does not owe rent to the out-of-possession co-owner.

Tax deductions for mortgage interest are supposed to be taken by the person who was obligated to make the payment, and actually did make the payment. It's been a long time since I researched the issue of what happens if one spouse pays all the interest and takes all the deduction, but I think if the obligation on the note is joint and several (as usual), you can take the entire deduction if you paid the full amount. Check this with a tax specialist.

Re: Buying out an ex-spouse

Mr. Whipple is right on as a general statement of the law, but it really depends on the language of your divorce decree.