Query Regarding Property and Debt Settlement in Marital Separation

Question

I am currently in the process of separating from my husband and seeking guidance on a few legal matters related to property and debt. 
 
 1. Inherited Property and Mortgage Contribution: My husband inherited a home, into which he invested some funds before we jointly financed the mortgage. In the event of our separation, is he entitled to reclaim the portion of the funds he invested initially? The funds were inherited and had to be rolled in to reduce purchase price.  
 2. Agreement on Property Profit: Post-purchase of the home, my husband had me sign a document, which he authored, stating that any profits from the sale of the house would belong to him in the event of our separation. I would like to understand the legal standing of this agreement. 
 3. Recovery of Contribution Towards Pre-Marital Debt: During our marriage, I contributed approximately $35,000 towards my husband’s pre-marital debt. Is there a possibility for me to recover this amount as part of the separation settlement?

Robert P. Taylor · Answer

You need to consult with a divorce attorney ASAP. My specialty is bankruptcy but I used to do a lot of family law years ago. First, if your husband inherited real estate, property inherited is generally their separate property. To the extent community funds went to pay down a mortgage on the property, then the community acquires an interest.  
 
Two, sounds like the agreement you signed isn't  worth the paper it's written on. It wasn't executed with the formalities required of a post-nuptial agreement or a transmutation agreement. 
 
As for the $35,000, I'm not sure. But if you can't trace it and or it's been a very long time, you're probably out of luck.

James L. Arrasmith · Answer

Regarding your situation with the inherited property and mortgage contribution, California law generally considers property acquired by inheritance as separate property. However, the situation can become complex if community funds (like your joint financing of the mortgage) are used for the property. Your husband may have a claim to the portion of the funds he initially invested, especially if they were from his inheritance. However, your contribution to the mortgage could also give you some rights to the property. This blend of separate and community contributions often requires careful legal analysis. 
 
As for the agreement you signed regarding property profits, its enforceability depends on several factors. In California, agreements made during marriage about property division need to adhere to certain legal standards, including full disclosure and fairness. If the document you signed was not made with legal counsel or did not meet these standards, it might not be enforceable. It's crucial to have this document reviewed by an attorney who can assess its validity under California law. 
 
Regarding your contribution towards your husband's pre-marital debt, recovery of these funds can be a complex issue. Generally, funds used to pay a spouse's pre-marital debt are considered a gift to the marriage. However, you may argue for reimbursement if it can be shown that these contributions significantly benefited your husband's separate property. This aspect of your case would benefit from a detailed analysis by a legal professional, as they can provide specific guidance based on the nuances of your financial contributions during the marriage. 
 
In all these matters, it's important to seek legal advice tailored to your specific situation. An attorney can help navigate the complexities of property division and ensure your rights and contributions are properly considered in the separation settlement.

Q: Query Regarding Property and Debt Settlement in Marital Separation