HOW TO CALCULATE THE COMMUNITY PROPERTY INTEREST IN A SEPARATE PROPERTY HOME (MOORE/MARSDEN VALUE)
You owned a home before you got married. After getting married (or into a registered domestic partnership, “RDP”), you made mortgage payments on the home with funds earned during marriage (community property earnings). You are divorcing. How much does your ex receive from the home?
LawYou owned a home before you got married. After getting married (or into a registered domestic partnership, "RDP"), you made mortgage payments with funds earned during marriage (community property earnings) and so the community (you and your spouse / RDP) purchased an interest in your separate property home. At divorce, you will need to calculate the community property interest in the separate property home. This rule comes from the case Marriage of Moore, which states that when community funds are used for mortgage payments on property purchased by one spouse before marriage, the community acquires a "pro tanto" interest in the ratio that the payments on the purchase price made with community funds bear to the total payments on the purchase price, and any appreciation must be apportioned accordingly. ((1980) 28 C3d 366, 371.)
To get an idea of the community interest, fill in this worksheet and follow the directions.1. Purchase Price $____________ 2. Down Payment of separate property funds $____________ 3. Total Payments on loan principal made with separate property funds $____________ 4. Fair Market Value at date of marriage $____________ 5. Total Payments on loan principal with community property funds $____________ 6. Fair Market Value at time of division $____________ 7. Subtract line 1 from line 4 $____________ 8. Subtract line 4 from line 6 $____________ 9. Divide line 5 by line 1 $____________ 10. Multiply line 8 by line 9 $___________ 11. Subtract line 10 from line 8 $____________ 12. Add lines 2, 3, 7, and 11 $____________ = separate property 13. Add lines 5 and 10 $____________ = community property 14. Each party receives 1/2 of the community property interest (line 13) unless you have agreed to an unequal division to offset or equalize other property.