Help with California Family Code §2640 (Contributions to the acquisition of property)

[boshuda2004]

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

I have a pretty simple question regarding California Family Code Section 2640 ("Contributions to the acquisition of the property").

My divorce lawyer has filled the following:
STIPULATION AND ORDER REETITIONER’S RIGHT TO REIMBURSEMENT FOR SEPARATE PROPERTY CONTRIBUTION TO COMMUNITY ASSETS (FC §2640)

Here is the situation:

- During my marriage, I have received $85,000.00 from my parents as a gift and such gift shall be considered my separate property. (All forms available)

- The totality of this amount ($85,000.00) was used as a down-payment for the family residence, acquired during marriage. (wire transfer forms as well as the bank statements to trace the funds are all available)

- According to my lawyer, I have a right to reimbursement for this separate property contributions of $85,000.00 as described above towards the acquisition of the family residence pursuant to California Family Code §2640

- The problem is that the property lost a lot of value:

a) It was purchased at $485,000 in 2006. We financed $345,000.00. (down payment comes from separate property contributions mentioned above and money on a separate joint saving account).
b) Now property's value is $360,000.00 and the mortgage balance is $330,000.00. So only $30,000 of equity in the house.

How is this going to play in the end?
Will my ex-wife actually have to reimburse $85,000.00 to me or much less?

I want to understand if I will be able to keep the house.

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

 

[LdiJ]

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

I have a pretty simple question regarding California Family Code Section 2640 ("Contributions to the acquisition of the property").

My divorce lawyer has filled the following:
STIPULATION AND ORDER REETITIONER’S RIGHT TO REIMBURSEMENT FOR SEPARATE PROPERTY CONTRIBUTION TO COMMUNITY ASSETS (FC §2640)

Here is the situation:

- During my marriage, I have received $85,000.00 from my parents as a gift and such gift shall be considered my separate property. (All forms available)

- The totality of this amount ($85,000.00) was used as a down-payment for the family residence, acquired during marriage. (wire transfer forms as well as the bank statements to trace the funds are all available)

- According to my lawyer, I have a right to reimbursement for this separate property contributions of $85,000.00 as described above towards the acquisition of the family residence pursuant to California Family Code §2640

- The problem is that the property lost a lot of value:

a) It was purchased at $485,000 in 2006. We financed $345,000.00. (down payment comes from separate property contributions mentioned above and money on a separate joint saving account).
b) Now property's value is $360,000.00 and the mortgage balance is $330,000.00. So only $30,000 of equity in the house.

How is this going to play in the end?
Will my ex-wife actually have to reimburse $85,000.00 to me or much less?

I want to understand if I will be able to keep the house.

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

You can keep the house if you can refinance in your name only. Your stbx will certainly not have to reimburse you 85k or even any portion of the 85K, but its possible that with proper tracing of funds that you won't have to reimburse her any portion of the equity.

Basically, the way it would work if proper tracing of the funds is possible is that if the equity exceeded 85k that you would get the first 85k and the rest would be divided 50/50.

However, since the equity is less than 85k the most you could hope for is 100% of the equity. However, again, if you want to keep the house you will have to be able to refinance it into your name only.