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Getting divorced in CA...Questions about recovering parental gift (house)

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recentlydivorcd

Junior Member
My state is California.

My ex (still husband legally) and I have been separated for about a year and unfortunately we've decided to file for a divorce in California. When we first got married, my husband and I were both students, but my parents generously offered to buy a house for us and paid for the house in full, as a gift. Almost all of the money (99%) was transferred directly from my father's account to the joint escrow account, which was in my and my husband's joint names. The house was closed on the grant deed as ours, as wife and husband.

In retrospect, I should've had my husband sign some documents regarding what separation of the gift in case of divorce, but in my hubris I failed to do this.

After deciding to get a divorce, I've consulted several attorneys about my case and the family code 2640 seems rather murky. Some attorneys are contending that this is a simple case, where my parents should be able to recover 100% of their funds, while others are saying it may be difficult to challenge the house's status as a community property because we lack any paperwork.
How can I get more clarity with regards to reimbursement claims per CA family law code 2640? Would it make sense to go to trial in order to recover 100% of my parental gift or aim for a realistic settlement offer, somewhere around 80% recovery?
 


Zigner

Senior Member, Non-Attorney
My state is California.

My ex (still husband legally) and I have been separated for about a year and unfortunately we've decided to file for a divorce in California. When we first got married, my husband and I were both students, but my parents generously offered to buy a house for us and paid for the house in full, as a gift. Almost all of the money (99%) was transferred directly from my father's account to the joint escrow account, which was in my and my husband's joint names. The house was closed on the grant deed as ours, as wife and husband.

In retrospect, I should've had my husband sign some documents regarding what separation of the gift in case of divorce, but in my hubris I failed to do this.

After deciding to get a divorce, I've consulted several attorneys about my case and the family code 2640 seems rather murky. Some attorneys are contending that this is a simple case, where my parents should be able to recover 100% of their funds, while others are saying it may be difficult to challenge the house's status as a community property because we lack any paperwork.
How can I get more clarity with regards to reimbursement claims per CA family law code 2640? Would it make sense to go to trial in order to recover 100% of my parental gift or aim for a realistic settlement offer, somewhere around 80% recovery?
The operative words are "us" and "gift".
Why do you think that the house is anything but community property? It was gifted to you both, not to one or the other.

ETA: You weren't given the funds as a gift which you then used to pay for the house...these were not separate assets that were used to pay for the house.
 

LdiJ

Senior Member
My state is California.

My ex (still husband legally) and I have been separated for about a year and unfortunately we've decided to file for a divorce in California. When we first got married, my husband and I were both students, but my parents generously offered to buy a house for us and paid for the house in full, as a gift. Almost all of the money (99%) was transferred directly from my father's account to the joint escrow account, which was in my and my husband's joint names. The house was closed on the grant deed as ours, as wife and husband.

In retrospect, I should've had my husband sign some documents regarding what separation of the gift in case of divorce, but in my hubris I failed to do this.

After deciding to get a divorce, I've consulted several attorneys about my case and the family code 2640 seems rather murky. Some attorneys are contending that this is a simple case, where my parents should be able to recover 100% of their funds, while others are saying it may be difficult to challenge the house's status as a community property because we lack any paperwork.
How can I get more clarity with regards to reimbursement claims per CA family law code 2640? Would it make sense to go to trial in order to recover 100% of my parental gift or aim for a realistic settlement offer, somewhere around 80% recovery?
That is honestly a personal decision that you should make with the advice of your divorce attorney. Personally, I would never try to take half of a house that my spouse's parents purchased. I might want half of the appreciation that accrued during the marriage but that would be all. So, a lot is going to depend on your husband.
 

recentlydivorcd

Junior Member
The operative words are "us" and "gift".
Why do you think that the house is anything but community property? It was gifted to you both, not to one or the other.

ETA: You weren't given the funds as a gift which you then used to pay for the house...these were not separate assets that were used to pay for the house.
When I read the family code 2640, I was under the impression that my parents would be able to recover the funds because we could provide a) an oath that the gift was intended for me, b) trace the source of the money as my father's.
What else would I need to prove that the gift was not intended for both parties?
 

recentlydivorcd

Junior Member
That is honestly a personal decision that you should make with the advice of your divorce attorney. Personally, I would never try to take half of a house that my spouse's parents purchased. I might want half of the appreciation that accrued during the marriage but that would be all. So, a lot is going to depend on your husband.
I believe that he and his counsel will argue whatever is most advantageous, which would be to go for the 50% of the whole proceeds. I'm just trying to build my legal case to support my claim for 2640 reimbursement.
 

Zigner

Senior Member, Non-Attorney
When I read the family code 2640, I was under the impression that my parents would be able to recover the funds because we could provide a) an oath that the gift was intended for me, b) trace the source of the money as my father's.
What else would I need to prove that the gift was not intended for both parties?
Nobody on this forum will encourage you (or anyone else) to commit perjury. The gift was purchased for BOTH OF YOU, not for one or the other. Your first post said it.
 

recentlydivorcd

Junior Member
Nobody on this forum will encourage you (or anyone else) to commit perjury. The gift was purchased for BOTH OF YOU, not for one or the other. Your first post said it.
I'm sorry about the confusion from my earlier post.

I was not saying that the gift was purchased for both of us. My parents always intended it to be a gift for me and me only, but the direct deposit was made directly into a joint account, which was obviously a mistake.
 

LdiJ

Senior Member
Nobody on this forum will encourage you (or anyone else) to commit perjury. The gift was purchased for BOTH OF YOU, not for one or the other. Your first post said it.
I don't think that she is trying to commit perjury. I can pretty much guarantee that her parents did not intend for the husband to be able to walk off with half of what they spent for the house.
 

Zigner

Senior Member, Non-Attorney
I'm sorry about the confusion from my earlier post.

I was not saying that the gift was purchased for both of us. My parents always intended it to be a gift for me and me only, but the direct deposit was made directly into a joint account, which was obviously a mistake.
What do you mean you were not saying it was a gift purchased for both of you? That's EXACTLY what you said. The fact that it was titled as JTWROS is even further evidence against the notion that it's separate property.
 

Zigner

Senior Member, Non-Attorney
I don't think that she is trying to commit perjury. I can pretty much guarantee that her parents did not intend for the husband to be able to walk off with half of what they spent for the house.
Really? If that were the case, then they would have insisted the house be titled differently. I think what happened here is that nobody ever thought this would end in divorce. They gifted the house to BOTH OF THEM due to a lack of foresight.
 

recentlydivorcd

Junior Member
What do you mean you were not saying it was a gift purchased for both of you? That's EXACTLY what you said. The fact that it was titled as JTWROS is even further evidence against the notion that it's separate property.
JTWROS?
Sorry for asking dumb questions, but what does the title of my post have to do with evidence for or against the notion that it's a separate property?
 

recentlydivorcd

Junior Member
Really? If that were the case, then they would have insisted the house be titled differently. I think what happened here is that nobody ever thought this would end in divorce. They gifted the house to BOTH OF THEM due to a lack of foresight.
Wouldn't my parents' testimony be legal evidence that the gift was for me, and not for both of us?
 

Zigner

Senior Member, Non-Attorney
JTWROS?
Sorry for asking dumb questions, but what does the title of my post have to do with evidence for or against the notion that it's a separate property?
Were you lying about the intent for the nature of the property when you had it titled, or are you lying about it now?
 

Zigner

Senior Member, Non-Attorney
Wouldn't my parents' testimony be legal evidence that the gift was for me, and not for both of us?
Again - they paid for a house that was to be titled in BOTH of your names. Now that things have gone south, it's suddenly not what they intended? I suspect their testimony is going to carry far less weight than the documentation that is already in place.

I ask again, and not to be snarky, were they fibbing then or now?
 

recentlydivorcd

Junior Member
Were you lying about the intent for the nature of the property when you had it titled, or are you lying about it now?
First of all, I don't understand why this is important?
I'm not testifying when I'm posting to get some advice on an internet forum.

Regarding my initial post, perhaps I was a bit imprecise in my language, but I think I have since clarified that my parents gave the funds as a gift for me, not for both of us.
Gift was coming from my father, and as such, wouldn't his testimony be the important evidence here, not my or my husband's opinion of the nature of it?
 

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