moore marsden calculations

saram · Joined: 02 Oct 2009 Posts: 1 1.00 Dollars($)

Hello - I have read through the responses so far and can't find one similar to mine:
I bought rental property in 1991 as a single woman. The rentals were cash flow positive and the titles have remained in my name since I bought them. In 1995 I married and began depositing the rental proceeds into our community checking account.

I have a lot of records showing rental income into our community account but no records showing the mortgage payments. I had several different property management firms through the years. Sometimes the mortgages were paid by the property management, sometimes by me from the rental proceeds that had been deposited to our community account, but I can't find records of either. The mortgages were paid off in 2001

We separated in 2007 and are still working on a settlement. My ex claims a moore marsden interest from the date of the marriage since the rental proceeds were depositied to the community account. He can not show that the rental mortgages ever depleted the account and we no longer have records showing how the mortgages were paid.

My attorney has advised me that unless I can prove the rentals were cash flow positive then the court will assume there is a moore marsden interest since the income went into a community account and there is a presumption that the community made the mortgage payments. I do have some tax returns showing a positive cash flow year to year on the properties but unfortunately no other records. By the time my husband moved out we had discarded all records going back to the date of marriage - thinking you were only supposed to keep records for 7 years. Please advise - there is a lot riding on this! The jurisdiction is California.

jameshogg · Posted: Fri Oct 02, 2009 8:05 pm Post subject:

Hi melville_sarah,

I must say that you are in a tough situation. As you submitted the rental income in the community accounts, it would be considered as a community property unless you have documents proving it to be your separate income. Thus, your husband can claim Moore Marsden interest from it.

You've mentioned that you've tax returns which proves that there was a positive cash flow year to year on the properties. I would suggest you to show them to your attorney and check if those documents can be of any help to you.

Thanks

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