Legal Question in Real Estate Law in California

Can I sell a home I purchesed in my name 6 months before getting married to the woman I lived with in the home. She helpef pay on the mortgage. I would like to sell it before I file for a divorce


Asked on 2/21/13, 1:52 pm

1 Answer from Attorneys

Bryan Whipple Bryan R. R. Whipple, Attorney at Law

There are three potential problem areas.

First, did she contribute to the down payment at all? If so, she could have an interest in the home in proportion to her contribution to the down payment under a principle called "purchase-money resulting trust." If she didn't make any financial contribution toward the down payment, don't worry about this.

More likely, however, your wife has acquired an interest in the property through her contributions to the mortgage payments, and do keep in mind that all money earned as wages or salary by a couple during marriage is considered community property, regardless of which spouse receives the paycheck. Then, all principal reductions made with community income result in the marital community -- the two of you -- acquiring a gradual interest therein. This is called a "pro tanto interest" (legal Latin). Calculating the dollar amount of community interest (vs. your interest as purchaser) is best done by a divorce attorney (not me) using special software they have for this purpose ("DissoMaster" I think).

Finally, the Family Code (section 1102) restricts the ability of one spouse to sell property in which there is a community interest. You may not be able to convey good title to a buyer if the buyer has notice that there may be a community interest in the property, and if the home is occupied by the two of you, that'd probably be sufficient to put the buyer on notice when an inspection was made. I'd certainly consult with a Family Law attorney before attempting to sell, especially if your wife is still living in the home.

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Answered on 2/21/13, 3:07 pm


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