Friday, August 26, 2011

DO I OWE MY SPOUSE MONEY ON PROPERTY I OWNED BEFORE OUR MARRIAGE?

QUESTION: I owned a condo before marriage as my sole and separate property, since 1988. In 2006, I put my husband on title so that he could be President of our HOA. We separated in 2010. He contributed no money to the Condo. The mortgage has been in my name only. Now he wants 1/2 my condo. Do I owe any money to my husband on the Condo?

MY RESPONSE:

You likely transmuted your condo to community property when you added your husband to title, but you are entitled to reimbursement, pursuant to Family Code Section 2640, of the equity in your condo as of the date you converted the condo to joint ownership, as your separate property, before the balance gets divided 50/50.

Due to devaluation of real properties as a result of the recession, it is possible that there may be no balance to divide after your reimbursement.

You will likely need to retain an appraiser to appraise the condo as of the date you added your husband to title, and as of the date closest to trial.

If your mortgage was being paid down with community funds (i.e., your or his income) during the marriage prior to the date you converted the condo to joint ownership, your husband may have a small Moore/Marsden community reimbursement interest in the condo.

You would best retain an experienced Family Law Attorney to represent you in your divorce case.

This educational blog is brought to you by DONALD F. CONVISER, an effective and aggressive Los Angeles Family Law Attorney and Divorce Lawyer serving clients in the courts of Los Angeles and Ventura County for over 35 years,owner of Warner Center Law Offices, with offices in Woodland Hills and Century City. Call 888.632.4447 or 818.880.8990 for a free confidential consultation with a Certified Family Law Specialist to discuss your divorce or family law issues. | www.conviser.net | www.conviserfamilylaw.com |

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