Legal Question in Real Estate Law in California

Re: My Home Equity Loan Paying Spouses Business Debts

Your question is very interesting. It's somewhat leaves nothing to the imagination. Your attitude describes a great deal in your facts. You need an attorney now. Any extensive answers to these set of facts will not do justice to what you need to hear from an attorney when they ask you that questions in their own manner and understand what your intent is. Your intent clearly set forth by saying what you want and having them tell you if it is legally attainable. Please, please see an attorney right away and do not wait. If you want I am in the San Francisco Bay Area in Contra Costa County and practiced real estate law for over 30 years. My telephone number is 925 -- 945 -- 6000.

Re: My Home Equity Loan Paying Spouses Business Debts

Your question is loaded with facts and presents many issues as well as raising several additional questions. It will be difficult to give you reliably helpful advice without a personal interview. You are in a tough spot, with a lot at stake. Be sure to make an appointment with some attorney (perhaps me, if you wish, I'm in Marin) at the earliest possible moment. Until then, here are a few pointers that might help:

1. You can find out how title to his building is held, and what liens may exist on it, by a trip to the recorder's office (Martinez?).

2. If you've been married 23 years and his practice is 20 years old, you almost certainly have a substantial community-property stake in it, possibly as high as a full 50%.

3. By APC, did you mean that the business is a professional corporation? Whether it is or not, you can't be sure that the marital community is not also liable for some of the business debts.

4. What do you mean by CC? Contra Costa County? Were property taxes in arrears?

5. Funds borrowed using the equity in community property (the house) are ordinarily also community property, so in a very real sense he's paying business debts with both-of-your money.

6. You say the loan is in your name, not his, and if so something is very much awry because one spouse cannot encumber a community-property residence without the consent of the other in any ordinary above-board loan transaction, at least to my knowledge.

7. It is very clear that your marriage suffers from a lack of communication and candor.

8. It is also likely, but by no means certain, that you are in some way or another being fleeced. The whole situation as you describe it reeks of fraud, or at least failure of husband to deal with the marital community's property and affairs as a fiduciary, as required by the Family Code.

9. I cannot advise you whether to exercise your right of rescission or not. That is just too big a step for a lawyer to take for a non-client he hasn't interviewed. One possibility would be to threaten to do so unless you get a full and satisfying explanation of all the matters you're in doubt about, how the loan proceeds will be applied, and when and how the loan will be repaid. Then get the highlights in writing.

10. This has all the hallmarks of a marriage headed for rocky shoals and you should be very prudent and cautious until you have some reassurances, explanations and professional advice.

11. What did you change to joint tenancy, and why? Was the thing changed formerly community property?