Just bought a house... now what?

Posted by: TryingToGetBy

Just bought a house... now what? - 06/13/17 03:24 AM

Here are the short details... wife of 15 years, 2 kids (girls 7 and 11), just found out that she's been having an affair for the past 4 months. During this time, we purchased a home. (Yes, she was sleeping with the other guy while I worked my ass off to get us into a home). Anyway, we've been in the house for just about 2 months. The only equity we have in this house is the down payment we put against it ($288K). That down payment came from 2 sources: life insurance proceeds from my dad's passing ~1 year ago and a gift from my mom. From what I've been told, the life insurance money is not a community asset in CA and therefore she's not entitled to a share of it. The gift was given to both of us. My financial adviser as well as an attorney I consulted both have said that she's only entitled to 1/2 of the gift money. But people keep asking me if she's on the deed. Does that matter? I'm trying to figure out what's fair and equitable, while still trying to maybe maintain this home for my 2 daughters.
Posted by: TJMH

Re: Just bought a house... now what? - 06/13/17 06:38 AM

I wouldn't be surprised if your wife argued that when you put the life insurance money into the house you comingled it so all the equity is community property. You can argue the opposite, hard to say how it will turn out. But I don't think her being on the deed has much to do with that.

If you mean to keep the house you'll need to buy out her share of the equity (or maybe, if you're going to have custody of the kids, trade it against child support from her). You will need to get her off the deed, and off the mortgage if she's on it. Otherwise, no matter what the divorce decree says she'll still have legal liability.