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  1. #1

    Default Use of Significant Separate Assets Toward the Purchase of a Marital Home

    My question involves a marriage in the state of: CA

    Husband purchased a home in May of 1998 with his own $100,000 down payment before marriage.

    Husband and Wife were married on July of 1999.

    The original home was titled in his separate name and he made all payments up until the day it was sold after marriage in July of 2001.
    Husband then applied his $150,000 in equity as a down payment on a new home . Payments of the mortgage were subsequently made from joint bank accounts after that date to the present.

    The second home was originally titled in both names, and later refinanced and placed in wife’s name only (for business reasons).

    The question are as follows:
    Under CA Family Code 2640, is the husband entitled to be reimbursed the $150,000 down payment from community property when the home is sold?
    A prenuptial agreement was also signed by husband and wife (reviewed by counsel to each party) that specifically excluded Husband home from community property. This expired after 10 years of marriage but clearly showed “intent” to not donate these assets to the community.

  2. #2
    Join Date
    Jun 2012
    Posts
    173

    Default Re: Seperate or Community Property or Reimbursement

    Wow, this sounds like something straight out of the bar exam. Theoretically, yes the husband would be entitled to reimbursed for his $150k if the funds he used can be traced back to the separate property (his separate home's equity). This is especially true if the wife keeps the second home as her own separate property. Theoretically though, the second house would still be considered community property even after the refinance and changed name. While there is a presumption that the name on real property title denote the actual owner in a community property situation, in practice, the home often ends up being still considered community property and is split down the middle.

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