QUESTION

Does a closing attorney's "standard paperwork" at refinancing invalidate the fact that a home is investment property?

Asked on Jan 22nd, 2014 on Divorce - Texas
More details to this question:
I purchased a home with a woman as an investment. In fact, we owned 3 investment properties. We later married but did not reside in the home. We refinanced the home and the closing attorney included paperwork to change the deed to reflect my wife's married name. I did not request this document, and my intent at refinancing was to get a better rate for our investment loan, not to convert the investment property to marital property. My wife and I are divorcing. We have lived in the home for the last 3 years in an effort to avoid capital gains on our investment. We were living in the first home when we decided a divorce was in our future. We agreed to sell that home and use the proceeds to fix up the next home while we lived there for 3 years, take those proceeds and put them in the last home (the home in question), then sell that home, divorce and go our separate ways. Now that divorce proceedings are underway, my wife is saying the home is not an investment/personal property, but instead a marital asset. My question is, does the closing attorney's "standard paperwork" at refinancing truly invalidate the fact that this home is investment property, an individual PRE-MARRIAGE asset, that should be a 50:50 split?
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2 ANSWERS

Personal Injury Attorney serving San Antonio, TX at Law Offices of James P. Peterson
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Community property(property acquired during the marriage) is divided in a just and fair manner. That could mean 50/50 , 60/40 or whatever considering fault in the breakup of the marriage. Separate property acquired before the marriage can become community if there was an intent to transfer it into the community. The community has a right to be reimbursed for payments made to separate property during the marriage.The seperate estate has a right to be reimbursed by the community property also. Separate property is usually divided among the separate property holders 50/50.
Answered on Jan 27th, 2014 at 7:37 AM

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Business Law Attorney serving Bingham Farms, MI at James T. Weiner, P.C.
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by living in it and changing it to her name as husband and wife you may have made it marital asset. How much different is the 50-50 split from the investment she made? ask your divorce attorney.
Answered on Jan 27th, 2014 at 7:37 AM

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