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How do you figure out community interest in a property?

Posted on: 24th Apr, 2007 07:08 pm
Friend owned a property prior to marriage (182K), married 3 years later value was at (225K), by the date of their separation, home valued at 597K. How do you figure out what the community interest was?

Thank you
Welcome Susan,

The community property interest is calculated on the basis of the principal loan amount which each spouse in community property pays with their funds.

You may refer to a previous discussion where you will find calculation of the Community Property Interest as per Moore Marsden Rule.
Posted on: 24th Apr, 2007 08:37 pm
Hi Susan,

It will be easier for me if you can provide your contribution towards the debt payment against the property.

I am just showing you rough calculation assuming your contribution of 5K towards the principal payment as per Moore Marsden rule:

Then, CP Interest = 5K + (5K/182K * 43K) = 6K (Approximate)

Still if you have any doubt, please let me know.

Thanks
Posted on: 24th Apr, 2007 10:35 pm
Susan, this is formula by which community property interest of each spouse can be calculated.

CP = PPCP + (CP% x MApp)

CP: Community property
PPCP: Principal payments from community property
CP% or Community property percentage = PPCP / Purchase Price
MApp: Appreciation during marriage

But as you can see, you need to provide some more details to know how much the value comes out to.

Miller
Posted on: 25th Apr, 2007 05:08 pm
Property was owned at least 20 years before second marriage. Does the fact that now you are married in May 1996, but have not placed your spouse on deed till 2002 allow for the rule to apply when if only in Aug of 1996 you refinanced the balance of your separate property of $35,000,
to an interest only note (3 months after your 1996 marriage), would the spouse be allowed to go back to the original date of loan (1982 or there abouts, before the marrriage) of the separate property loan? Wouldn't the spouse be entitled (if there is any entitlement) to only the princple paid in those three months? There is no issue as of 2002 when spouse was placed on deed.
Posted on: 19th Sep, 2008 01:22 pm
Hi vanvolk!

welcome to the forums!

Whether your spouse is contributing or not contributing, as his/her name is not on the deed he/she will not be entitled for any rights in the property as his/her name is not on the deed.

Feel free to ask if you have further questions.

Sussane
Posted on: 24th Sep, 2008 10:03 pm
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