What rights does my husband have on the properties before our marriage in case of divorce?
Asked on Aug 22nd, 2012 on Divorce - North Carolina
More details to this question:
I purchased my home in 2009. I got married in 2011. I am curious to know what rights my spouse has to the home in case of separation or divorce. He is not on the deed, we have not refinanced and none of his money was used in the purchasing of the home. Any advice would be greatly appreciated.
You are entitled to the equity you had in the property prior to marriage. However, the equity built after marriage is marital, and your husband is entitled to half of that.
Unless you purchased the house outright he has an equitable interest in the value of the house based on the fact that community funds paid the mortgage. Thus the equity would be divided by first deducting your down payment, any increase in value based on that amount and the rest would be a community asset in which he would have an interest. Since you haven't owned the house very long, you won't have very much equity over and above the down payment.
He would probably have some right to the equity accrued in the house during the course of your marriage as your income during the marriage would be considered 'marital property.' In other words, he 'paid' half of every mortgage check you wrote during the course of the marriage (even if you used separate accounts).
In Alaska the question is whether the home has been transmuted into the marriage. If it was purchased before the marriage and no marital funds were used for the mortgage or the upkeep then you should be able to keep it separate. An attorney can better assist you with the details.
He probably has very little interest in your house - other than any marital money that was used to reduce the amount of any mortgage on the house during the one year of marriage. Hire a good lawyer to go over all the financials and then address the issue knowledgeably.
If community income was used to pay on or improve properties you owned before marriage, your husband is entitled to reimbursement of one-half of that total amount.
If you used community funds to improve or maintain the home, he could claim reimbursement for one-half said amount. Also, he can claim one-half the principle reduction of each mortgage payment you made.
The court will look at what has happened to the home since 2011 in regards to improvements made or any increase in value. In most cases, it would appear that the argument would be that a portion of the equity is not marital property and a portion of the equity may be martial property subject to equitable division.
If ALL of this information is true, then he does not have any rights. However, you may have done some things here and there to have to court consider it "marital" property. However, because of the length of marriage, we would agrue in your favor and more than likely, he would not have any rights to the property.
You can argue that a portion of the house is your separate property. The burden is on you to prove this. The court can divide your separate property but tends to give you back your separate. Unfortunately, a portion of the house equity is also community probably.
If community funds, ie: your earnings were used in the payment or maintenance of the home during marriage then he would be entitled to a money but not the property. If nothing was used then he would be entitled to nothing. This is a general statement of the law and there may be other facts which would affect the answer.
Your husband may not have any rights, but you should proceed as quickly as possible with the divorce. Have you considered Mediation? Mediation is Fast, Effective and Affordable. Check it out.
Indiana is a community property state. That means everything owned and owed by the parties regardless of title and date of acquisition goes into the marital pot to be split up. You may be able to argue that you have kept the properties completely separate and therefore they should be set aside, but if you've been paying the mortgage or taxes on them with your earnings during the marriage, they are comingled. Look for an attorney that does high asset divorces. There are ways to minimize your loss, but they are very fact specific. Good luck.
According to caselaw and depending upon the value of the home, there could be a community "lien" against your home. For example, if you used community funds to pay the mortgage, then you would have to consider taking a look at the formula to assess any community interest in it. You are going to need to consult an attorney to accurately calculate that value, whatever it may be.
Generally, the definition of separate property is found in section 50-20(b)(2) of the North Carolina General Statutes - all real and personal property acquired before marriage, or property acquired during the marriage by bequest, devise, descent or gift. Professional and business licenses which would terminate on transfer are expressly defined to be separate property, as is any increase in value to separate property and income derived from such property. However, the increase in value that remains separate is passive appreciation only, such as by inflation, market forces, third-party effort, or government action. Increases in value attributable to the marital unit, i.e., active appreciation resulting from the personal, financial or managerial contributions of one or both spouses, is marital. Many times property is dual classified. This is often the case when property is purchased before the marriage and then, during the marriage the non owning spouse either increases the value of the home by improving the property or helping to make payments on the property.
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