| Frequently Asked
Questions About Real Estate and Relationships... If I own the property before we
get married does she still get it if we break up?
No. In California divorce law, it is
important to distinguish "community property" from "separate
property". §761 of the California Family Code provides that "except as
otherwise provided by statute, all property, real or personal, wherever situated, acquired
by a married person during the marriage while domiciled in this state is community
property." But, §770 of the California Family Code provides that separate property
of a married person includes the following: (1) all property owned prior to the marriage;
(2) all property acquired after the marriage by gift or inheritance; and (3) all rents,
issues and profits of any separate property asset.
When a couple divorces in California, the court
will divide all of the community property in half and award 100% of the separate property
to its respective owner. "This means that if you own property prior to getting
married it remains your separate property even after you break up. However, there are some
exceptions to this rule. For instance, if you commingle your assets you can make an asset
community property. Also, if you make a down payment on a piece of real estate with
separate property funds prior to the marriage, but throughout your marriage you make
mortgage payments from your community wages, your spouse will have a community interest in
that property known as a Moore-Marsden interest, which is calculated
with a formula based upon the amount of loan principal paid from community funds. However,
you will get your separate property down payment back.
Does it
matter that we got married in another state but bought property here?
California divorce law makes no
distinction regarding where a person is married. The key is whether at the time of
divorce, the State of California can claim jurisdiction over the marriage and the
property. In other words, you must ask if you are domiciled in California. If you are,
then the property you acquire while married will be considered "quasi-community
property" unless you can show that the property was purchased with your separate
property funds. The distinction between community and quasi-community property is academic
because they are both treated alike under community property law for the purposes of
marriage and divorce.
What
happens to the property if we are married here but move to a different state and leave
this one a rental?
The community still owns it and it will
be divided upon divorce. You may need to check with an attorney in the other state to see
how the property would be classified there.
How
long do we have to be married before the spouse is entitled to half my stuff?
All property that you acquire prior to
the marriage remains your separate property forever. The only exceptions are
when you "gift" your separate property to the community with a document called a
"transmutation" or if the separate property is so commingled with the community
property that a court would not be able to reasonably separate it - as is sometimes the
case with bank accounts.
We're
legally married but haven't even seen each other in 4-5 years and I want to buy with
someone else.
DON'T DO IT! That is unless your spouse
signs a quit claim deed and a document that expressly declares that he has transmuted his
community property interest in the new house to you. Your interest in the house you buy
with someone else could be considered community property. However, if you can make the
purchase entirely with separate property funds and can prove it, your interest in the new
property will remain your separate property. The best policy in this situation, however,
is to file for divorce or legal separation prior to the purchase, which
would establish a date of separation.
If I
own this house with my parents and we get married is he entitled to part of my half?
No. Remember, any property acquired prior
to the marriage is your separate property. However, one way a spouse could get an
interest after the date of marriage is if you make mortgage payments from a community
property source such as your wages.
If I
bought a house a week or two before we were legally divorced does she still get half?
The question that should be asked is not
when the divorce is legally finalized, but when you were separated. The law defines your
date of separation as that day on which it was clear to both parties that the marriage was
irretrievable. That could be the date a spouse moved to a separate residence or the date a
Petition for Dissolution of Marriage was filed at court. If the house was acquired after
the date of separation, it will be considered separate property. (Beware: if you use
community property funds to purchase the house or to make a down payment, you run the risk
of giving your ex-spouse an interest in the property or - at the very least - a right to
reimbursement.)
BE CAREFUL! Adding a spouses name to the title
for a piece of separate real property (i.e., a deed) will turn the property into a
community asset. However, a right to reimbursement of the separate property investment
will still stand.
DISCLAIMER: The purpose of the information
contained herein is to provide general information on the law, which is subject to change
and may not apply to your specific situation. It in no way can be construed as legal
advice. If you have a specific legal problem, you may want to consult a lawyer.
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