Property Distribution


Dear goodname:

Greetings. Generally this type of house transaction is presumed to be a gift to the marriage, but the court can take the equity situation into account, but it may not do anything about it due to the gift presumption. The proceeds from the first house are no longer separate property (although they would have been if the house was titled solely, even though the house would have marital equity as well as separate equity due to principal reduction mortgage payments made during the marriage). Good luck.

Janet L. Fritts
Attorney with Rosen Law Firm

4101 Lake Boone Trail, Suite 500
Raleigh, North Carolina 27607
919.787.6668 main phone
919.256.1665 direct fax

301 McCullough Drive Suite 510
Charlotte, North Carolina 28262
704.644.2831 main voice
704.307.4595 main fax

1829 East Franklin Street, Bldg 600
Chapel Hill, NC 27514
919.321.0780 main phone
919.787.6668 main fax


The response posted above is based upon the limited factual information made available and is not intended as a full and complete response to the question. The only reliable manner to obtain complete and adequate legal advice is to consult with an attorney, fully explain your situation, and allow the attorney sufficient opportunity to research the applicable law and facts required to render an accurate opinion. The basic information provided above is intended as a public service but a full discussion with an attorney should be undertaken before taking any action.


If one spouse owns a home prior to marriage, sells during marriage and acquires a new home (in both names). Will ED take into consideration the equity earned in the old house prior to purchase of the new home or will only the new home equity be considered.

Example: Old house sold and proceeds were $50,000 and that money was used to purchase new home (DP). House mortgage debt is $200,000 and value is $300,000.

Is the ED based on $100,000 if property sold for $300,000? OR is the $50,000 proceeds from the first house considered separate property?