Q: Rights to $100,000 pre-marital equity in new house division?
I owned a home in Nebraska before marriage, where we lived after getting married. We later moved to another home. I purchased the initial home for $200,000, and at the time of marriage, its assessed value was $250,000, with a remaining mortgage of $150,000. There was no prenuptial agreement, and both homes were financed through me. My spouse contributed cash monthly for general bills, not specifically towards the mortgage, and we kept our finances separate. The new home is assumed to be titled in both our names, despite the loan being solely in mine, and the down payment included pre-marital funds. There were no significant repairs or updates made during the marriage. I'm seeking to understand my rights to the $100,000 equity of the previous home in any division related to the new house.
A: Well, it depends. Did your spouse contribute to increasing the home value? Pay for renovations? Did marital money (any income earned by either spouse in marriage) get spent to increase value or pay on mortgage? What is the total monies in marital estate and money available to both sides? Are there premarital debts? How long were you married? Do you have children together? There are more questions, but this is why this is not a quick legal question… get a confidential meeting with a lawyer to get your answers!
A: The burden to prove a pre-marital asset or pre-marital equity is on the spouse claiming the pre-marital equity. The more you can show that that the asset/equity has been kept separate and is traceable to the pre-marital asset/equity, the easier it is to convince the judge to award you the pre-marital equity. The reality is that how hard or how easy it is going to be convince the Judge to award the pre-marital equity often also depends on other factors involved in the case. For example, If the marriage has been a relatively short marriage, such as 5 years or less, the Court is generally much more willing to award pre-marital equity. On the other hand, if you've been married 30 years, have raised your children together, have upgraded to multiple homes over the years, it might be far less likely that the judge will still separate out that pre-marital equity at this time. This is just one example of how your overall situation affects your odds. What you and your spouse have said and done in the meantime also matters. You should speak with a family law attorney to discuss your best strategy.
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