Rental Income on Community Property

Is an ex spouse entitled to half of rental income on a community property asset?

Property-Presumption5777583A divorcing couple decide to let their family home foreclose. The ex husband was living in the property at the time. The husband filed for BK to delay the foreclosure and rented the house. Then the husband decided to start paying the mortgage again in an attempt to keep the property. Is the ex wife entitled to half the rent the ex husband is receiving?

Our Answer:

Assuming the property is still in both names, the wife is entitled to half the rent her ex is receiving. Sounds as if the wife should take him to small claims court. It also sounds as if the house is an “unadjudicated asset” (the divorce judgment doesn’t say who gets it). In that case, if it ever becomes worth anything, you might want to go back to divorce court and ask for it to be sold and the proceeds divided. If the house is an unadjudicated asset, there is a possibility that the small claims court has no jurisdiction to deal with who gets the rent, and that a small claims court judge might refuse to hear your case and send you back to divorce court.

For more information on Community Property during Divorce, Please visit our website: http://stanprowse.com/community-property-law-california

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