Q: How will the value of a separate property home be divided?
A home owned by one party prior to marriage was rented most of the marriage. Rent payments were deposited to a joint bank account prior to paying the mortgage invoice. Will full rent income be reimbursed to the community, or only the amount above what the mortgage payment was? Non owning party managed this property by handling all budgets and related maintenance. Does this constitute active appreciation? The value has gone up significantly due to market passive appreciation. Most of the mortgage payments were applied only to interest. How will this be divided at divorce? Half the difference in principle? Half the rent income? Half the equity value during marriage with non owning spouse “managing”?
A: In Idaho there is a presumption that property owned by the parties is "community property." The home was owned individually by one party but the income from it was deposited into a "joint account." Once the funds were deposited into their "joint" bank account, the "presumption" of "sole" is overcome unless the original owner had some "agreement" that all income was his/her's or some other kind of "tracing." It is unlikely however, that absent some agreement between the parties that the court would treat the income as "separate property." The increase in value of the real property however, remains sole property of the original purchaser.
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