Purchased a house in 2010, with then boyfriend. Broke up for a period of time, in 2011, and he signed a quitclaim deed, to remove his name from the home. He was paid back what he invested in the house. Deed was notarized, and recorded. Reconciled, and married in 2013. His name was never put back on the home, and it was never on the mortgage. Now, divorce is happening. He now wants to live in the home, and purchase it back. So, two questions. 1) If the house is sold to a third party, is he legally entitled to any of the profit? 2) If the home is sold to him, does he have to pay fair market value?
An argument can be made that the house is your separate property because it was acquired before the marriage and on the date of marriage, the house was titled in your name only and he had been reimbursed in full what he invested years before. However, if while married, the two of you both contributed funds to pay the mortgage down and/or make improvements, then he may have a claim that at least a portion of the house is marital property. It is possible that the house has both separate property and marital property components.
If the house is sold to a third party, he could be entitled to some of the profit if he is able to claim a marital property classification to the house.
If the house is sold to him, he would need to pay fair market value and buy you out of the home.
Anna Ayscue
Attorney with Rosen Law Firm Cary • Chapel Hill • Durham • Raleigh
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