Premarital Real estate by 2 months

Meeting for mediation next week and wondering how to handle a premarital property. Property was purchased on 4/1 & we were married on 6/26. We have been married 20 years. Original Deed of Trust in my name as “non married” was for $105K, house is now valued at $227K. Original D/T was a construction loan that was used to purchase a lot and build house, $22k was drawn @ closing for purchase of lot and closing cost. Construction began immediately. We had lot cleared, septic installed, water tap, foundation & house completely framed up by 7/28. ( I had an ER visit this day after falling off the roof, only timeline I have)

How do I determine premarital value when the house was under construction?

Is it reasonable to claim the original D/T $105K as non marital value?

How would a judge view/handle this?

Thank You in advance

The house is likely classified as both separate property and marital property, and your spouse would be entitled to half the marital value.

It is separate property because you purchased it prior to the date of marriage, assuming it is titled in your name only.

It is marital property because marital funds (funds earned during the marriage) were used to pay down debt on the house (and therefore increase equity), and it would also be marital property if improvements were made during the marriage.

Since the home/lot was purchased and constructed so close to the date of marriage, likely the whole value is marital property to which your spouse is entitled to one-half. Since you are attended a mediation session, the value that your spouse is entitled to can be negotiated.

It is not reasonable to value the original deed of trust at $105,000 (the original amount). The value of the debt at the date of marriage is irrelevant. What is relevant are the values at date of separation.


Anna Ayscue

Attorney with Rosen Law Firm Cary • Chapel Hill • Durham • Raleigh • Wake Forest

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