Marriage of Frick
Court of Appeal of California
181 Cal. App. 3d 997 (1986)
Lydie Moore (plaintiff) purchased a home for $56,640.57 in 1966. Lydie put a down payment of $16,640.57 on the home and obtained a loan for the remainder of the balance. Lydie made monthly payments on the loan and reduced the principal balance by $245.18. Approximately eight months after Lydie purchased the home, Lydie married David Moore (defendant). Lydie and David lived in the home during their marriage. The Moores made payments on the loan balance using community-property funds. The community-property funds contributed to the principal balance, interest, taxes, and insurance. Lydie and David separated in 1977. Lydie continued to make payments on the loan during the separation. At the time of trial, the total principal paid on the home was $23,453.02. The remaining balance on the home was $33,187.55. The value of the home was $160,000, and the equity in the home was $126,812.45. The trial court held that the home was Lydie’s separate property but that the community had an interest in the home based on payments made on the loan using community funds. The trial court established the community interest by determining the ratio by which the community payments reduced the principal amount owed on the loan as compared to the separate-property payments. The trial court did not give any credit for interest, taxes, or insurance paid. The equity value of the home was then multiplied against the ratio by which the community payments reduced the principal loan balance. David appealed the trial court’s ruling, disputing the method used to calculate the community interest in the home.
Rule of Law
Holding and Reasoning (Manuel, J.)
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