Q: Nebraska.Owned home got married sold home purchased new home with all the money I made on sale.New home has only my name
I am getting divorce do I have to split. I bought home during marriage but all the house was paid for with my home sale.
A: You may be able to “trace” your premarital property into the new home you purchased to have the court separate it from the marital estate before dividing what is marital. You will need an experienced divorce lawyer to help you through that process. Best wishes!
Generally, property that was purchased in the marriage is marital. However, if a pre-marital asset or pre-marital funds were used to purchase the property during the marriage, then that part of the property may be a pre-marital asset. The burden is on the spouse arguing that the asset is pre-marital.
For example, if you owned a home prior to the marriage that was paid in full (no mortgage). A few months into the marriage, you sell the home for $100k and use those proceeds as a down payment to buy a home for $300k during the marriage. The parties then divorce a few years later. There is $100k left on the mortgage and $200k in equity. In that situation, the spouse might argue that $100k of the equity is due to the pre-marital funds and is thus a non-marital asset. The spouse would argue that of the $200k in equity, they are entitled to $150k and the other spouse is entitled to $50k. If the spouse could show enough evidence to trace $100k of the equity to the pre-marital down payment, the Court might award the spouse $150k of the equity as requested.
If you are thinking, what if the mortgage was not paid in full, what about the closing costs, what about the improvements made on the home during, what effect does the appreciate value have on the home, you can see why these questions of tracing can get complicated quickly.
Long story short, if you brought in a value asset to the marriage, it is often worth spending the time and money to properly trace the funds to argue for its value to be considered non-marital.
Justia Ask a Lawyer is a forum for consumers to get answers to basic legal questions. Any information sent through Justia Ask a Lawyer is not secure and is done so on a non-confidential basis only.
The use of this website to ask questions or receive answers does not create an attorney–client relationship between you and Justia, or between you and any attorney who receives your information or responds to your questions, nor is it intended to create such a relationship. Additionally, no responses on this forum constitute legal advice, which must be tailored to the specific circumstances of each case. You should not act upon information provided in Justia Ask a Lawyer without seeking professional counsel from an attorney admitted or authorized to practice in your jurisdiction. Justia assumes no responsibility to any person who relies on information contained on or received through this site and disclaims all liability in respect to such information.
Justia cannot guarantee that the information on this website (including any legal information provided by an attorney through this service) is accurate, complete, or up-to-date. While we intend to make every attempt to keep the information on this site current, the owners of and contributors to this site make no claims, promises or guarantees about the accuracy, completeness or adequacy of the information contained in or linked to from this site.