The key is how the Husband and wife chose vesting in escrow when they bought the house. Since the husband brought 100k as his sole and seperate money how did he vest the property? Was the house Joe doe married man as his sole and seperate property or Joe doe and Jane doe as joint tenants ? Also was both of their incomes used to qualify for the loan? IF the husband didn’t intend to make this community property how was he making the payments for the home– through his community or seperate funds?
[quote=terracap]The key is how the Husband and wife chose vesting in escrow when they bought the house. Since the husband brought 100k as his sole and seperate money how did he vest the property? Was the house Joe doe married man as his sole and seperate property or Joe doe and Jane doe as joint tenants ? Also was both of their incomes used to qualify for the loan? IF the husband didn’t intend to make this community property how was he making the payments for the home– through his community or seperate funds?[/quote]
The law is pretty clear on this issue, and vesting as separate property isn’t necessary. Even if the property was vested as community property, if the down payment came from separate property, it can come out as separate property.
[quote=FlyerInHi][quote=moneymaker]I think the fair thing would be to recognize that the asset has deprecited 20%, hence so has your down payment. So if bought for 500k and sold for 400k then you both share a loss of 10k each. Now after 5 years your principal is 460k, subtract out 80k which leaves 20k,so wife owes you 10k. P.S.- I’m still in my first marriage so what do I know![/quote]
Where’s the other $80k going to come from?[/quote]
My mistake the principal should be $360k after 5 years, if sold for $400k,subtract out the $80k,which leaves $320k, add back in the $20k that both parties need to bring to the table and you are back at $360k which will pay off the principal.
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