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.