It all boils down to proof. If you can prove where the funds came for your downpayment, then you should be fine. But if she can prove that she did give you funds of hers, then there may be something there. Sure, you can try to claim it as a gift, and that may work...but it might also be seen in a different way since you were getting married. It may be viewed as "buying" an interest in the property. Either way....regardless of whether or not HER funds contributedto the down payment....she is entitled to 50% of ANY equity earned during the marriage...even if it was only 7 months. If the house value went up $50K during that 7 month period, she is entitled to $25K. It's called community property. Yes the property itself is yours, but the equity is INCOME...which belongs to both parties during a marriage.
PS...she doesn't HAVE to work in order to earn income involving property. That's the beauty of real estate investments.
Edited by Melody (07/07/05 11:53 PM)