Skorick

BACKGROUND

Pape’s mother, and Karanikolas’s grandmother, Mary Pape, owned the property at issue until her death in 2006. Pape and Karanikolas lived with her. Upon her death, she willed the property to her three children, including Pape, in equal shares; at the same time, Karanikolas’s now ex-husband, Sean Montgomery, moved into the property. In 2007, Pape and Karanikolas refinanced the property to “buy out” Pape’s siblings. The refinance produced $350,000. Karanikolas and Pape also borrowed $100,000 from Montgomery for the buyout, and Montgomery secured his loan with a second deed of trust on the property. Pape and Karanikolas successfully bought out Pape’s siblings and Pape and Karanikolas became 50/50 joint owners of the property. In 2008, Karanikolas and Montgomery married. By 2009, however, Karanikolas and Montgomery had separated, and in 2010 they divorced. Montgomery never had an ownership interest in the property. Karanikolas and Skorick began dating at the end of 2009. During their whirlwind courtship, Skorick showered Karanikolas with lavish gifts and was also generous with Pape. In early 2010, Karanikolas and Skorick decided to live together. Skorick planned to relocate…