Marriage Of Lucas

27 Cal.3d 808 (1980)

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Nature of the Case

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Facts

H and W were married in March 1964 and lived together continuously until their separation in December 1976. W was beneficiary of a trust. The trust corpus was distributed to her free of the trust in September 1964. She immediately established a revocable inter vivos trust of which she was trustor and beneficiary. The trust, conceded by H to be W's separate property, had a value of approximately $44,000 at the time of trial. In November 1968, H and W bought a house for $23,300. W used $ 6,351.57 from her trust for the down payment, and they assumed a loan of $16,948.43 for the balance of the purchase price. Title to the house was taken as 'Gerald E. Lucas and Brenda G. Lucas, Husband and Wife as Joint Tenants.' W paid $2,962 from her trust funds for improvements to the property; the remainder of the expenses on the property was paid for with community funds. The residence had a fair market value of approximately $56,250 and a loan balance of approximately $14,600, leaving a net equity of approximately $41,650. The community had reduced the principal by $2,052.32 and paid $ 6,801.14 in interest and $ 5,146.20 for taxes. W did not intend to make a gift to H of any interest in the home purchased with her separate funds, nor did she know of any other legal significance of taking title to real property in the manner it was taken. The trial court deducted W's $ 2,962 payment for improvements from the equity of $41,650.50 and then awarded a community property interest in the residence of 24.42 percent with a value of $9,477.50. A separate property interest of 75.58 percent with a value of $29,241 was confirmed to W. H appealed.