Rights to real estate property

[snownjuly]

California - friend purchased home in 1992, $20K down and made double mortgage payments for a number of years greatly reducing interest costs and increasing equity in home, then in 1996 marries and puts wife's name on deed. Now in 2000 getting a divorce. He's being told that the ex-wife is entitled to 1/2 per California community property laws. How is this possible? And what can he do to rectify this situation. Why should she benefit from the big down and double payments he made as a single man just because he added her name to deed as a sign of committment & faith to the marriage? Help!!

 

[I AM ALWAYS LIABLE]

California - friend purchased home in 1992, $20K down and made double mortgage payments for a number of years greatly reducing interest costs and increasing equity in home, then in 1996 marries and puts wife's name on deed. Now in 2000 getting a divorce. He's being told that the ex-wife is entitled to 1/2 per California community property laws. How is this possible? And what can he do to rectify this situation. Why should she benefit from the big down and double payments he made as a single man just because he added her name to deed as a sign of committment & faith to the marriage? Help!!

My response:

She is entitled to half of the increased value of the property beginning in 1996. If the house was valued at $100,000.00 in 1996, and today is worth $200,000.00, an increase of $100,000.00 during the marriage, she is entitled to $50,000.00.

How is this possible? Why should she benefit? Because California is a Community Property State, and your friend failed to protect himself with a prenuptual agreement before marriage. That's how !!

IAAL