Legal Question in Family Law in Utah
Pre-marital home appreciation subject do property division?
I purchased a home before I was married. My name alone appears on the title, and on the mortgage. So, the house itself is clearly a pre-marital asset. What about the appreciation of the house? Is that considered a marital asset? We haven't substantially improved the home during the time we've been married. The market value of the home has increased by approximately $40,000. Is my spouse entitled to half of the appreciation, or does she have no claim because the home was a pre-marital asset?
1 Answer from Attorneys
Re: Pre-marital home appreciation subject do property division?
Generally a spouse is entitled to one half of the appreciation of a marital asset. Since you house is probably mortgaged, there is an argument that she contribues half of the maintenance and payments. To compute appreciation you take the value of the house at the date of marriage from the value at the time of divorce times 94% (taking into account that a realtor's commission would have to be paid).