NJSBA Family Law Section

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  • 1.  Non-passive increase in value

    Posted 05-19-2017 12:20 PM
    Husband has a premarital home purchased in 1999.  Parties began living together in 2012 after hurricane Sandy when Husband's home was destroyed.  Parties get married in 2014 and obtain a construction loan in both names to build a new home on the old lot.  Parties worked together with the contractor to build the home, select the upgrades, etc.  Land is worth $510,000, home is now worth $590,000, for a combined value of $1,100,000.  Wife's name is not on the deed.  Parties were married for 3 years, no children, Husband is the breadwinner, Wife did not contribute to the mortgage, nor has she brought any assets into the marriage.  What if anything is Wife's entitlement to the value of the home which was built during the marriage through both their efforts?  Under Mol v. Mol, 147 N.J. Super. 5 and Weiss v. Weiss, 226 N.J. Super. 281, I believe she's entitled to a share of the house though the land is pre-marital and exempt, the home was built during the marriage and the increase in value was not solely due to market forces.  Thoughts?

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    Jessica N. Mazur, Esq.
    Hoagland, Longo, Moran, Dunst & Doukas, LLP
    Partner and Chair of the Family Law Department
    Certified by the NJ Supreme Court as a Matrimonial Law Attorney
    Court Appointed Rule 1:40 Mediator
    Offices:
    1704 Maxwell Drive, Wall, NJ
    40 Paterson Street, New Brunswick, NJ
    732-545-4717
    [email protected]
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  • 2.  RE: Non-passive increase in value

    Posted 05-19-2017 01:22 PM
    I agree. The fact that the loan was taken out in both of their names shows that both parties contributed to the increased value. Both parties should be entitled to a portion of the increased value.