What is Moore Marsden and do I need it?
/Experienced San Francisco Bay Area Family Law Attorneys will tell clients about reimbursement rights for property purchased prior to marriage with separate property funds.
For example, if one spouse owns a residence or other real estate as separate property before marriage, and then community funds are used to reduce the principle owed on the mortgage, then the community estate will acquire a pro-tanto interest in the property. This is commonly known as Moore/Marsden based on two cases in the 1980s.
Stated another way, Moore/Marsden Rule provides that when community property funds are used to reduce the principal balance on a loan used to acquire a separate property residence owned prior to marriage by one of the spouses, the community acquires an interest in that property.
A different approach has been used when community property is used to improve separate property. In family law, separate property funds that are contributed to a community property are entitled to reimbursement under Family Code 2640 (without interest or appreciation). Be careful because the statute limits reimbursement to the net value of the property at the time of division. An additional wrinkle in Moore Marsden calculations can be a refinancing - so contact a family lawyer or Certified Divorce Financial Planner if you have questions about separate property reimbursement.
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