Moore/Marsden Example: Community Improvement of Separate Property Richard purchased property for $12,500 in 1990 before his marriage. In 1995, when he married Sienna, the property was worth $50,000. The couple made extensive improvements during their marriage at a cost of $77,500. When Richard and Sienna separated in 2005, equity in the property was $450,000. The community and separate property interests are calculated as follows: Total Investment $12,500 purchase price + 37,500 premarital/preimprovement appreciation + 77,500 community improvements $127,500 total investment Richard’s Separate Property Investment $12,500 purchase price + $37,500 premarital appreciation $50,000 total separate investment Ratio of Separate and Community Property Interests $50,000 / $127,500 = 39.22% separate property interest $77,500 / $127,500 = 60.78% community property interest Appreciation in Equity $450,000 equity at date of separation – 50,000 less equity at date of marriage $400,000 appreciation during marriage Separate and Community Property Shares in Equity Appreciation 39.22% separate property share of equity appreciation during marriage: $400,000 x .3922 = $156,880 60.78% community property share of equity appreciation during marriage: $400,000 x .6078 = $243,120 Interests on Dissolution of Marriage Sienna’s one-half of community interest in appreciation: $243,120 / 2 = $121,560 Richard’s separate and community interests: $156,880 separate interest in equity appreciation + 121,560 one-half of community interest in appreciation + 12,500 purchase price + 37,500 premarital/preimprovement appreciation $328,440 © 2006 Judicial Council of C

Moore/Marsden Example:
Community Improvement of Separate Property
Richard purchased property for $12,500 in 1990 before his marriage. In 1995, when
he married Sienna, the property was worth $50,000. The couple made extensive
improvements during their marriage at a cost of $77,500. When Richard and Sienna
separated in 2005, equity in the property was $450,000. The community and separate
property interests are calculated as follows:
Total Investment
 $12,500 purchase price
+ 37,500 premarital/preimprovement appreciation
+ 77,500 community improvements
 $127,500 total investment
Richard’s Separate Property Investment
 $12,500 purchase price
+ $37,500 premarital appreciation
 $50,000 total separate investment
Ratio of Separate and Community Property Interests
$50,000 / $127,500 = 39.22% separate property interest
$77,500 / $127,500 = 60.78% community property interest
Appreciation in Equity
 $450,000 equity at date of separation
– 50,000 less equity at date of marriage
 $400,000 appreciation during marriage
Separate and Community Property Shares in Equity Appreciation
39.22% separate property share of equity appreciation during marriage:
$400,000 x .3922 = $156,880
60.78% community property share of equity appreciation during marriage:
$400,000 x .6078 = $243,120
Interests on Dissolution of Marriage
Sienna’s one-half of community interest in appreciation:
$243,120 / 2 = $121,560
Richard’s separate and community interests:
 $156,880 separate interest in equity appreciation
+ 121,560 one-half of community interest in appreciation
+ 12,500 purchase price
+ 37,500 premarital/preimprovement appreciation
 $328,440
© 2006 Judicial Council of C