California property laws for divorce

[Kenjoel]

My daughter is married and lives in California. We want to give her a large some of money from her trust, that was created many years before her marriage, for the down payment on the purchase of a house. If the check is from her trust, made out to her name, is this considered community property if there is a divorce or is this considered separate? My expectation is that if there is a divorce this sum should be subtracted from the total assets and returned to her and then any remaining balance would then be considered community property. Is this how California law works? I attempted to research California law and believe my expectation is true based on Ca Const. Art. I § 21; Ca Fam § 770(a)(2)What is the name of your state?

[MFinancier]

Originally Posted by Kenjoel

My daughter is married and lives in California. We want to give her a large some of money from her trust, that was created many years before her marriage, for the down payment on the purchase of a house. If the check is from her trust, made out to her name, is this considered community property if there is a divorce or is this considered separate? My expectation is that if there is a divorce this sum should be subtracted from the total assets and returned to her and then any remaining balance would then be considered community property. Is this how California law works? I attempted to research California law and believe my expectation is true based on Ca Const. Art. I § 21; Ca Fam § 770(a)(2)What is the name of your state?

Yes you are correct...however any mortgage payments made afterwards out of community income will entitle your daughters husband to a portion of the appreciation based on th Moore Marsden formula:

CP = PPCP + (CP% x MApp)

CP: community property
PPCP: principal payments from community property
CP%: community property percentage = PPCP / Purchase Price
MApp: appreciation during marriage

SP = DP + PPSP + Pre-MApp + (SP% x MApp)

SP: separate property
DP: down payment
PPSP: principal payments from separate property
Pre-MApp: premarriage appreciation
SP%: separate property percentage = 100% - PPCP / Purchase Price