In Re Marriage of Branco

This appeal concerns the characterization upon dissolution of the parties’ marriage of real property owned by respondent wife prior to the marriage and of loans secured by that property. Appellant husband contends the community acquired an interest in the appreciation of the property during marriage that was not acknowledged by the trial court and complains that the court improperly found loans secured by the property to be community obligations.

Statement of the Case and Facts

The parties were married on August 6, 1977, and separated on September 28, 1990. Prior to the marriage, in 1970, respondent and her former husband had purchased real property at 26432 Taft Street in Hayward for $28,950, as joint tenants. The former husband quitclaimed the property to respondent as her separate property when they divorced in 1973. Near the end of 1976, the balance on the loan for this property was $23,482.91.

In June 1978, the parties refinanced through the Bank of America, using a portion of the $46,000 loan to pay off the original home loan. The loan application showed the balance on the original mortgage as $22,800. Respondent testified that the remainder of the new loan was…