Seperate Property Question used to buy New House

[davies1234]

What is the name of your state (only U.S. law)? TX

What happens to Seperate Property (house) that is sold and used to buy a new house in the below scenerio?

Seperate Property sale proceeds: $100,000
$100,000 from sale of Seperate Property is used to put down on New house purchased for $250,000.

What happens to the New House upon divorce?

 

[mistoffolees]

What is the name of your state (only U.S. law)? TX

What happens to Seperate Property (house) that is sold and used to buy a new house in the below scenerio?

Seperate Property sale proceeds: $100,000
$100,000 from sale of Seperate Property is used to put down on New house purchased for $250,000.

What happens to the New House upon divorce?

Depends.

If the mortgage, taxes, etc are paid solely from separate funds, then the house remains separate property.

If, OTOH, marital funds are used to pay some or all of the expenses, then the growth in equity during the marriage is marital.

 

[davies1234]

The mortgage would be paid off by other spouse with out the seperate property.

Would this mean the new house upon sale would still be considered seperate property and just equity would be community?

Wife has seperate property/Husband does not

 

[mistoffolees]

The mortgage would be paid off by other spouse with out the seperate property.

Would this mean the new house upon sale would still be considered seperate property and just equity would be community?

No. If one spouse received the property as a gift but the other spouse paid for it, then the assets are mingled and the whole house is community property.

However, if you can demonstrate that you brought significant assets into the marriage, or if you can untangle the gift from later contributions, they may be separate. You'll probably need an accountant to straighten it all out.