This is my next post on how Nevada divorce laws deal with the division of home equity. My last discussion dealt with what happens to home equity during a divorce when the home was bought during the marriage. In this article I will deal with another common situation, how the Court divides equity in a home when one spouse owned the residence before the marriage.
Nevada recognizes that home equity may be community property even if one spouse owns the home before the marriage
It is common for a spouse to feel that they have all of the rights to home equity if they owned the residence before the marriage. This is often not the case, however, in Nevada. Under Malmquist v. Malmquist, the extent to which a home appreciates during a marriage may be community property if the mortgage payments were made with community funds. Given that wages of either spouse are typically community funds then this is a common situation in our state. The recent run up of housing prices in Las Vegas means that many people, who owned a home prior to marriage, may find themselves paying out part of their equity upon divorce.
This rule about home equity is true whether or not your spouse is on the mortgage of the home. One thing that eliminates this type of issue is if the parties signed a prenuptial agreement before the marriage and have been properly following all of that agreement’s provisions. Many residents of our city are surprised to find out that their spouse may be entitled to part of a home’s equity – such is the law of Nevada however.
Contact a Las Vegas divorce lawyer if you are dealing with the issue of a home owned prior to marriage
Several issues are involved in the issue of equity in a home owned prior to marriage. These issues involve determining how much the home was worth at the time of the marriage and arriving at a fair value in today’s market. Depending on the circumstances, there may also be disputes as to whether the mortgage has in fact been paid with community funds. Properly arguing these issues can make all the difference in determining how home equity is divided.
Contact a Las Vegas divorce lawyer today if you are facing this situation.