Separate property

EnvironmentalAd3558 · 2025-03-29T01:57:52+00:00

Some thoughts if you are not entitled to half the equity. Unlike other community property states, In Texas income from separate property is considered community property. The community might also be entitled to reimbursement for sums paid on the separate property.

pk2at · 2025-03-28T18:29:47+00:00

Don't waste your time on these calculations, put in a large figure in your favor and negotiate from there

Objective-Fan-5464 · 2025-03-28T17:00:59+00:00

Any equity in home at time of marriage would be hers but any increase in equity would be shared between you both. Also, since her 401k loan pre-dates your marriage, that is a separate liability.

So, you can argue that marital funds paid for the mortgage over the course of the marriage so you are entitled to half the increase in equity and the 401k loan is a separate liability to her and should not be considered in the split.

I work better with numbers so here is me just roughing it with an example below

She bought the house in 2018 for $300k with 20% down and half of that came from a 401k loan. Her equity in home = 60k, mortgage= 240k and 401k loan = 30k.
You got married in 2020 and mortgage was at $230k, house = $320k, equity=$90k (28%), and 401k loan = 32k
Now, during divorce, the house = $450k, mortgage = $200k,, equity = $250k (55.5%), and 401k loan = $40k.

So, with your participation, equity in home went from $90k to $250k and you are entitled to half of that or around $80k. Since she didn't pay back the 401k loan, that has accrued interest and is her responsibility.

Here is what you will need

At time of purchase: Appraised value of home (you can get from the county appraisal district) and financed amount (closing disclosure or historical statements)
At time of marriage Appraised value of home (from the CAD) and mortgage balance (from statements)
At time of divorce: Appraised value of home (from the CAD) and mortgage balance (from statements)

Title	Separate property
Author	Lonely_Panda4322
Upvotes	4
Comments	5
Date	March 28, 2025 1:33 PM UTC (1 year ago)
Subreddit	Posted in /r/Divorce_Men
Original Link	https://old.reddit.com/r/Divorce_Men/comments/1jlv6e4/separate_property/
Archive Link	https://theredarchive.com/r/Divorce_Men/separate-property.1547895 https://theredarchive.com/post/1547895

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