Family Law Blog

Refinance of Loan on Separate Property House Does NOT Make It Community Property

Yet another case holds that a refinance of the mortgage during the marriage on a spouse’s separate property house does not change the separate property nature of the asset.  The opinion in Despain v. Despain, 704 S.W.3d 866 (Tex. App. – Austin 2024, pet. __) states:

The fact that the parties refinanced the Property with a loan obtained by both Husband and Wife during the marriage also did not transform the Property into a community asset. See e.g., Howe v. Howe, 551 S.W.3d 236, 255-56 (Tex. App.—El Paso 2018, no pet.) (when couple borrowed funds to pay off mortgage on house that was spouse’s separate property, this did not transform house into community property); Langston v. Langston, 82 S.W.3d 686, 687-88 (Tex. App.—Eastland 2002, no pet.) (reversing trial court’s determination that community property interest in real estate was created by execution of note evidencing loan on property).

Id. at 870.

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