Legal Question in Real Estate Law in California

Re: Qcf

Your situation seems to sit at the intersection of two conflicting presumptions, both of which are rebuttable by factual evidence.

The first of the two presumptions is that the description of ownership in the recorded deed is correct. This is a common-law presumption also bolstered by statutes; See Evidence Code section 662 and Civil Code sections 1107 and 1213. So, if you have recorded a deed in which she granted or quitclaimed her entire interest to you, this raises a presumption that you became the sole owner. Tracing of funds used to make the acquisition will not un-do the presumption (see In re Marriage of Lucas (1980) 27 Cal.3d 808.

However, there is also a presumption of "undue influence" whenever a transaction between spouses favors one spouse. This presumption arises due to the specific language of Family Code section 721(b) declaring the relationship between spouses to be fiduciary, and requiring the highest standards of good faith and fair dealing.

If this matter comes before a family law court, the judge likely would expect you to prove that you obtained your 100% interest, despite your wife's greater monetary contribution to the down payment, by entirely ethical means and for a purpose or reason that makes sense. Possibly you could get by with nothing more than convincing proof that she intended to make you a very large gift. There are cases where an interspousal quitclaim for purposes of securing a loan on better terms due to the grantor spouse having poor credit has been sufficient to overcome the presumption of undue influence. Consult with a family law attorney before the issue comes up in court.