When a husband uses community funds to increase his separate estate, does the community have to participate in the increase in equity in the husband's property?

California, United States of America


The following excerpt is from Marriage of Sullivan, In re, 127 Cal.App.3d 656, 184 Cal.Rptr. 796 (Cal. App. 1982):

It has also been held that where the husband has used community funds to increase his separate estate, the court must determine the increase in his equity in the property before and after the marriage and also the fair market value of the property before and after marriage. The community is entitled to a minimum interest in the property represented by the ratio of the community interest to the total separate and community investment in the property. In the event the fair market value has increased disproportionately to the increase in equity, the community is entitled to participate in that increment in a similar proportion. (See In re Marriage of Denney (1981) 115 Cal.App.3d 543, 549, 171 Cal.Rptr. 440; In re Marriage of Jafeman, supra, 29 Cal.App.3d 244, 257, 105 Cal.Rptr. 483; Bare v. Bare (1967) 256 Cal.App.2d 684, 690, 64 Cal.Rptr. 335.)

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