Individuals preparing for divorce often take stock of their financial circumstances as they plan. They need to know what assets they can utilize when rebuilding their lives after the divorce. Most couples that share a marital home have a joint ownership interest in the property.
However, some families have less typical arrangements. Perhaps one spouse inherited the home from their parents or had already purchased the property when they initially got married. In theory, assets owned before marriage and inherited property can be separate property when people divorce.
Is a marital home ever potentially separate property for the purposes of asset division in a California divorce?
Classifying property can be difficult
People sometimes look at ownership records or purchase dates and think they understand the rules that may apply when they divorce. However, very few divorce scenarios are entirely black and white.
Even if one spouse already owned the home when they got married or if the home was part of their inheritance, it may still be part of the marital state. Commingling may have occurred. In some cases, commingling involves adding a spouse to the title of the property. In such scenarios, they likely have a reasonable claim of ownership.
Commingling can also involve the use of marital assets to maintain or improve resources that were separate property. People almost invariably spend some of their marital income on mortgage expenses, property taxes and home improvements.
In such scenarios, the non-owner spouse could theoretically claim that the home is marital property because of the commingling related to home expenses. Allowing the non-owner spouse to perform uncompensated labor to improve or maintain the home could also potentially strengthen claims of commingling.
Those who hope to preserve the marital home as separate property should they divorce typically need to have a marital agreement on record clarifying that expectation. Those facing complex property division matters may need help reviewing their situation to determine the best strategy to use when preparing for property division negotiation or litigation.
Being the only person on title does not necessarily preserve a home from division during a California divorce. Those who understand what the courts consider during property division disputes can develop reasonable expectations and a viable divorce strategy.