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I refinanced seperate property during marriage. Does that make it community property in CA

Divorce 2 views 2 answers
I purchased a duplex 5 years prior to marriage. It has always had positive cash flow and I have maintained seperate books for the property and never used the cash flow for our community needs. I refinanced and took out a Home Equity Line of Credit in 2007, when credit was easy to obtain. I did purchase an investment in a business and 3 classic cars from the HELOC and titled the cars in my name only and never used community funds to maintain the cars. Title of the duplex remained as "married man as sole and seperate property. I am now divorcing. My wife's attorney tells her that since I refinanced during marriage, the duplex and all property from it is now community. My attorney says no. Also, if it is community prop., can it be 10% hers, 90% mine (or some other percentage)?

Attorney Answers

2
Jeffrey Drabin ·
based on the facts as you have described them, I would agree with your attorney that all of the items flowing from the duplex as well as the duplex itself are separate property. The mere act of refinancing the property does not effect a transmutation of the property from separate to community. It sounds as if you took the proper steps to maintain your separate property interest in the duplex as well as the items that have flowed out of it and that you will be able to trace the funds to prove your claim should the matter actually end up as a contested issue in your divorce. good luck.
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