Hi. My husband sold a house that he owned before we were married. He is looking to buy a hunting/vacation property with the money. We would be paying the taxes, insurance, upkeep, etc. together with community property money. He may pay it from an account that is in his name only, but it would be money from his current income. He claims that the property would still be separate. Is that the case? Will the title company want my name on the deed since we are married? There will be no mortgage.
First, the title company doesn't care whose name is on the deed. Lenders want both names on the deed of trust (mortgage) so that their security interest is good even if the property becomes homestead.
If your husband can show the funds from his separate property are used to but the new property, the new property may be separate as well. However, the community may be entitled to a reimbursement claim for 1/2 of community funds used to pay expenses on his separate property. All of this is true no matter whose name is on the deed.
Similarly, the account that is only is his name may contain separate property, community property or both, and the spouse claiming separate property would have the burden of proof on how much, if any, is separate property.
On facts stated, due to principal of tracing if separate property funds are used to acquire another property and property is titled in sole name of person owning the funds, the new property would be the separate property of such person. The title company will not require your name to be on the deed. You will have certain reimbursement claims if community property is used to maintain his seperate property, pay taxes etc.
There is a presumption that property acquired by either spouse during marriage is community property. The burden of proof would be on him to prove through tracing the the new property was bought solely with proceeds from the sale of the old property. Further, if the new property is proven to be separate, there exists a right of reimbursement for community funds used to maintain and improve the property.
This information is provided for educational purposes only, and is not to be relied upon as legal advice. You should consult with an attorney with full disclosure of all facts and opportunity to consider all or alternative options.
Our Rating is calculated using information the lawyer has included on their profile in addition to the information we collect from state bar associations and other organizations that license legal professionals. Attorneys who claim their profiles and provide Avvo with more information tend to have a higher rating than those who do not.What determines Avvo Rating?Experience & background
Years licensed, work experience, educationLegal community recognition
Peer endorsements, associations, awardsLegal thought leadership
Publications, speaking engagementsDiscipline