Q: Brother divorcing after 6 years. He inherited our parents house during the marriage, but had to take out a loan...
..to buy out my half. His wife didn't want to sign, and apparently in California she needed to. I think he may have quick claimed the half that is borrowed against to her, in order for her to sign, then they both put it in a Trust Deed to the bank. So does he still own the whole house or now is it 1/4 hers? I signed 2 quitclaim deeds as executor trustee of trust the home was in; one as a gift (my half, after his bank deposited my money into the trust) and a quitclaim for the half that was his from inheritance.
I'm worried somehow she will be entitled to equity in the house, in 6 years it went up quite a bit (California real estate!) and if so he won't be able to afford to buy her 1/4 out. He never intended to give her his inheritance. He never asked her to help with the payments. So is he screwed and will have to give up the house to pay her after only 6 years of marriage?
A:
In California, inherited property is typically considered separate property, which means it's not divided in a divorce. However, if your brother's wife acquired an ownership interest in the property through a quitclaim deed, she may have a claim to that portion. If the home increased in value during the marriage, and community funds (like wages) were used to maintain or improve the property, the community might have a claim for reimbursement or a share in the appreciation.
The manner in which title is held and any written agreements between the parties can significantly impact property rights. If the property was refinanced during the marriage, and she had to sign, her interest might have been for the purposes of the loan only. It's essential to review all documents and the specific details of the transactions.
Your brother should consult with an attorney to get a clear understanding of his and his soon-to-be ex-wife's rights to the property. Proper legal guidance will be instrumental in navigating this complex situation.
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