Malmquist Formula

When couples purchase a home during the marriage, Nevada presumes this property to by community property. Community property, or at least the equity in the property, is typically divided equally or 50/50. Equity is the difference between what you owe on the property and the current market value of the property.

When a couple moves into a home that was owned by one of the spouses previous to the marriage, you get some tricky scenarios. Some of the property is separate property and doesn’t need to be divided, while some of the property is community property. Figuring out how much of the equity is separate property and how much is community property requires a formula.

The Nevada Supreme Court decided the case of Malmquist v. Malmquist, in which a formula for establishing these amounts was created. Below is that formula. By entering the different amounts the formula will calculate how much of the equity in the home is separate property, and how much is community property.

 

Final Results