Shea v. Shea

169 Cal. Rptr. 490 (1980)

Facts

H served in the United States Navy from January 1969 to January 1973. In May 1973 he began receiving veteran's education benefits, which continued, with a few interruptions during the summer months when he was not in school, until December 1978. In June 1974, he bought a house, taking title in his own name. He made a down payment of $3,000, paid almost $1,500 in 'points' and closing costs, and obtained a loan for the balance of the purchase price. H and W were married November 27, 1974, and separated May 17, 1979. H contends the veteran's benefits were his separate property and he sought to introduce evidence showing he had used these funds for most of the house payments made during the marriage. The trial court found the benefits received during marriage were community property and calculated the community interest in the house accordingly. In computing the community interest in the house, the court used the full amount of the monthly payments made during the marriage, instead of the amount by which these payments reduced the principal. H appealed.