[quote=memyselfandi]my attorneys are telling me that the separate property is separate property but the HELOCS are community debt. Just trying to figure out if it is still separate property reimbursement if the HELOCS were used to pay for the house and property taxes. Thanks for any info.[/quote]
My understanding (which could be complete crap – so take it with that understanding) is once funds (or debt) is comingled – it’s joint.
So inheritance/separate property – even if joint funds are used on it – is separate. Debt, in both parties names, is joint.
I was told that if a person receives an inheritance, while married, and puts the money in a joint account – it’s now joint property – so half the spouses…. However if it’s kept separate, it stays separate.
Real life example. I inherited some money from my dad. We used it to build a granny flat on our property. I cannot claim the amount put into the granny flat is MINE alone – since it is a jointly owned property. I gave up that separation when I chose to use the money that way.
Yours is kind of the reverse. It sounds like HELOC (joint) funds were used on a separately owned property. That didn’t change the status of the ownership of the separately owned property… and the HELOC is joint debt.