Moore Marsden Calculations: Dividing the Family Home in a California Divorce

Navigating the division of a family home in a California divorce can be incredibly complex, especially when one spouse purchased the home before the marriage, and both contributed to the mortgage during the marriage.

California family law provides for reimbursement in two scenarios:

• When separate property is contributed to community (marital) property.
• When community property is contributed to one spouse’s separate property.

To determine each spouse’s interest in a property like the family home, California courts use the Moore Marsden formula. Named after two landmark cases, this formula helps to divide property acquired by one spouse before marriage.

Calculating the Pro Tanto Interest

The spouse who originally purchased the home is entitled to a pro tanto interest in the equity accrued during the marriage. This is calculated by:

1. Adding the original down payment and the original mortgage.
2. Subtracting the amount paid down during the marriage.
3. Dividing the result by the original purchase price.

Example Calculation

Let’s assume the following values:

• Original down payment: $30,000
• Original mortgage: $100,000
• Amount paid down as a couple: $20,000
• Purchase price: $200,000

The purchaser’s pro tanto interest is 55%, so the community’s is 45%.

Calculating the Purchasing Spouse’s Actual Interest

Assuming the home’s current value is $350,000 (an appreciation of $150,000):

$82,500 (interest in community appreciation: 55% x 150,000)

+$30,000 (original down payment)

+$20,000 (amount paid down as a couple)

+$10,000 (amount of the principal paid down prior to marriage)

+$33,750 (community interest in appreciation (one-half): 45% x $150,000 x .5)

+$10,000 (amount paid down as a couple (one half): $20,000 x .5)

+ $50,000 (premarital appreciation (assuming that the house was worth $250,000 at the time of marriage)

The purchasing spouse’s actual interest is $236,250.

Calculating the Other Spouse’s Interest

The other spouse’s interest in the marital home is calculated as follows:

$67,500  (interest in community appreciation: 45% x 150,000)

+$20,000 (amount paid down as a couple)

÷ 2  (one-half of community interest)

Their interest in the home is $43,750.

Importance of Accurate Valuation

To perform a precise Moore Marsden calculation, knowing the property’s value at the date of marriage and at the date of division is crucial. This often requires assistance from a historical appraisal specialist.

Seeking Professional Assistance

Dividing real estate in a California divorce is intricate. For help ensuring a fair division of the family home, contact Tierney Law Group, P.C. We have extensive experience in guiding clients through the Moore Marsden formula to achieve an equitable share of the marital home.