Getting Divorced - How to Split House Value?

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

California

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The title of house has 3 names on it:
Husband, wife, & living trust of wife's parents.

They are on it because they helped with our down payment.

Wife's living trust parents are basically going
to give there share of house to wife in the end anyways.

Wife is also the executor of living trust.

She is divorcing me:
Is the house still split between wife & husband?

Or, is is split 3 ways = Wife, Her Parents, & Husband?

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House net fair market value = $137,000

She would keep $96,000.

She only wants to give me $41,000.

Does that sound right?

Or, am I entitled to half of the $137,000?

We got house after marriage.

Thank you all very much in advance.What is the name of your state (only U.S. law)?

aeon20 said:

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

California

---------------------------------------------------------

The title of house has 3 names on it:
Husband, wife, & living trust of wife's parents.

They are on it because they helped with our down payment.

Wife's living trust parents are basically going
to give there share of house to wife in the end anyways.

Wife is also the executor of living trust.

She is divorcing me:
Is the house still split between wife & husband?

Or, is is split 3 ways = Wife, Her Parents, & Husband?

------------------------------------------------------------

House net fair market value = $137,000

She would keep $96,000.

She only wants to give me $41,000.

Does that sound right?

Or, am I entitled to half of the $137,000?

We got house after marriage.

Thank you all very much in advance.What is the name of your state (only U.S. law)?

Click to expand...

You may be entitled to one half of you and your wife's ownership. So, together you own 2/3 - that means you may be entitled to 1/3.

This is the answer only to the question asked.

thank you so much for your quick response.

so, how much would that be for me?

also, the living trust of the parents names
counts as a separate entity outside our community property?


thanks again!

Yes, three entities own the property.

Just to be thorough - please post the exact wording on the title.

Oh - as to the math:
$137,000.00 divided 3 ways is $45,666.67 each.

all of you are awesome!
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the title reads kinda like this:

joe husband's name,

joe wife's name,

"joe wife's family's last name with the words living trust" connected joe wife's parents names (example i will use paris hilton , "hilton family living trust, then parents names).
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thanks again!

aeon20 said:

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

California

---------------------------------------------------------

The title of house has 3 names on it:
Husband, wife, & living trust of wife's parents.

They are on it because they helped with our down payment.

Wife's living trust parents are basically going
to give there share of house to wife in the end anyways.

Wife is also the executor of living trust.

She is divorcing me:
Is the house still split between wife & husband?

Or, is is split 3 ways = Wife, Her Parents, & Husband?

------------------------------------------------------------

House net fair market value = $137,000

She would keep $96,000.

She only wants to give me $41,000.

Does that sound right?

Or, am I entitled to half of the $137,000?

We got house after marriage.

Thank you all very much in advance.What is the name of your state (only U.S. law)?

Click to expand...

Sort of.

First, I'm assuming that there is no mortgage or lien on the house. If there is, then everyone's share gets reduced.

Unless the documents say otherwise, all 3 owners are entitled to an equal amount:
You get 1/3
She gets 1/3
Trust gets 1/3

She can not give 2/3 to herself. The trust's share has to go through the trust. Whether it eventually ends up with her or Mickey Mouse had no bearing on the issue. It belongs to the trust.

So, assuming that your value is correct, you would technically be entitled to $45,667. HOWEVER, if the decision is made to sell the house, or if you can't reach an agreement and ask the court to order it sold, you're going to have legal expenses fighting over it, selling costs, maintenance costs until it sells, and so on. You'd get quite a bit less than $45,667 if the house is ordered sold.

Personally, I would be quite happy with $41 K in this case. Make sure you have a payment in full before you sign the Quit Claim deed and make sure there's no mortgage or loan with your name.

Of course, that wouldn't stop me from at least some attempt at "how about if you give me $45,667 and we call it even" before simply accepting the lower figure. But if the answer is 'no', take the money and run.

mistoffolees said:

Sort of.

First, I'm assuming that there is no mortgage or lien on the house. If there is, then everyone's share gets reduced.

Unless the documents say otherwise, all 3 owners are entitled to an equal amount:
You get 1/3
She gets 1/3
Trust gets 1/3

She can not give 2/3 to herself. The trust's share has to go through the trust. Whether it eventually ends up with her or Mickey Mouse had no bearing on the issue. It belongs to the trust.

So, assuming that your value is correct, you would technically be entitled to $45,667. HOWEVER, if the decision is made to sell the house, or if you can't reach an agreement and ask the court to order it sold, you're going to have legal expenses fighting over it, selling costs, maintenance costs until it sells, and so on. You'd get quite a bit less than $45,667 if the house is ordered sold.

Personally, I would be quite happy with $41 K in this case. Make sure you have a payment in full before you sign the Quit Claim deed and make sure there's no mortgage or loan with your name.

Of course, that wouldn't stop me from at least some attempt at "how about if you give me $45,667 and we call it even" before simply accepting the lower figure. But if the answer is 'no', take the money and run.

Click to expand...

thank you very much for your time & knowledge!

she + family are keeping house.

thank you so much again!

Um...no. The calculation is more complex and depends on the actual numbers.

The equity of the house is probably not 1/3 to each.

While we are not trying to determine the percentage seperate property and community property, we can still use the logic of the moore-marsden rule to calculate the percentage ownership between the community and the trust.

We would need to know some facts:
1. The purchase price of the house.
2. The amount and the source of the down payment.
3. The amount of the principal reduction based on community property payments on the mortgage. (Or, the source of the principal reduction amounts.)
4. The amount of any improvements and the source of the payments for those.
5. The amount of any refinancing where money was taken out.

I was thinking a little more about the question and it's even more complex than what I wrote. Other agreements would be important as well. Also, this isn't really a community property/divorce question is it? It's straight property law. The family court will not have jurisdiction over the parent's ownership rights and cannot force the sale or monetary division of the house.

This is a partition lawsuit question. And, why are partition lawsuits so expensive and take so long? If it were just a matter of one owner wanting out and the property getting sold on the courthouse steps, they should not be that much or take that long. One party files, the sale happens. No, much of the litigation regards who actually gets rights to the money on the sale. Title may be presumptive, but it is not determinative. The end result will be the same calculation as in moore-marsden allocating the principal between the trust and the community and then taking the proportional appreciation and allocate that to the parties. *Then* the split.

If it were any other way, we'd have a great way to transfer wealth without taxation. Either by estate tax dodges or by changing ordinary income to capital gain and/or deferring it to some time in the future would all be possible if one could put more into the down payment and then divide the property equally without there being a present gift.