Marriage of Ramsey and Holmes

Summary

Holmes bought the home before marriage with $140,000 down and a $600,000 adjustable mortgage. The trial court treated all community-funded payments, about $288,000 at an average of $3,200 a month, as principal reduction. His declarations showed much of each payment went to interest, taxes, and insurance, and neither side proved the principal figure. The Court of Appeal held that was error under Moore, rejected forfeiture and the argument that the burden sat only with Ramsey, and reversed and remanded for a limited retrial on the principal reduction and a recalculation.

What it means for the financial analysis

Build the Moore/Marsden schedule from loan statements or an amortization schedule. Use the principal balance at marriage and at separation, and do not use total payments. Because the mortgagor is best placed to supply those records, get them early, and expect the court to order production if the record is thin. The same schedule needs date-of-marriage and current values from a supportable appraisal, not party opinion.

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