Legal Question in Real Estate Law in California

Re: Engaged to a homeowner

The property remains the separate property of the person who owned it before, except that if community assets pay down the principal balance, the community owns a small percentage.

The only way to obtain a larger ownership is to have the property deeded to both of your names.

Re: Engaged to a homeowner

The home is now your fiance's separate property and will remain substantially so long after the wedding bells ring.

In most cases, the subsequent payment of the mortgage with either (1) your separate funds or (2) community funds will give rise to a small community interest. Usually, the portion of the payment that goes to interest is disregarded and only the principal-reduction portion (which is very small at the outset of a mortgage) affects title.

The formulas used to compute this buy-in interest are somewhat complex and may apply differently in a divorce than for probate purposes.

I suggest asking a local attorney to explain the case of In re Marriage of Marsden (1982) 130 Cal. App. 3rd at page 426, which established the rule and formulas for determining the equity of the community under the buy-in concept.

It won't be 50-50 unless your new spouse makes you a gift. This would need to be done formally, in writing, with intent clearly stated, notarized and recorded.

Re: Engaged to a homeowner

if money from the community is used to improve the home and or make the payments you may be entitled to a portion of the home based on that input. For example, if it is 100% paid off and no improvements are made, you get nothing on divorce. If it is 1/2 paid off and no improvements are made and during the marriage the community (either he or you, unless there is an agreement to the contrary) and the remainder is paid off before divorce, you would be entitled to 1/2 of the house.

Joel Selik

www.4thelaw.com

800-894-2889