Marriage of Hixon CA4/2

CourtCalifornia Court of Appeal
DecidedMarch 5, 2025
DocketE082253
StatusUnpublished

This text of Marriage of Hixon CA4/2 (Marriage of Hixon CA4/2) is published on Counsel Stack Legal Research, covering California Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Marriage of Hixon CA4/2, (Cal. Ct. App. 2025).

Opinion

Filed 3/5/25 Marriage of Hixon CA4/2

NOT TO BE PUBLISHED IN OFFICIAL REPORTS California Rules of Court, rule 8.1115(a), prohibits courts and parties from citing or relying on opinions not certified for publication or ordered published, except as specified by rule 8.1115(b). This opinion has not been certified for publication or ordered published for purposes of rule 8.1115.

IN THE COURT OF APPEAL OF THE STATE OF CALIFORNIA

FOURTH APPELLATE DISTRICT

DIVISION TWO

In re the Marriage of ADAM and AMANDA HIXON.

ADAM HIXON, E082253 Respondent, (Super.Ct.No. FLHE1800210) v. OPINION AMANDA HIXON,

Appellant.

APPEAL from the Superior Court of Riverside County. Nicholas A. Firetag,

Temporary Judge. (Pursuant to Cal. Const., art. VI, § 21.) Affirmed.

Masson & Fatini, Richard E. Masson, Susan M. Fatini-Masson, for Appellant.

No appearance for Respondent.

Adam Hixon (Husband) and Amanda Hixon (Wife) divorced. The family court

found that, during the marriage, the marital home transmuted from Wife’s separate

property into community property. The family court also found that, at the time of trial,

1 the marital home’s fair market value was $395,000, which was the value opined by

Husband’s expert, Jeff Cane (Cane). Wife contends the family court erred by finding a

transmutation, by finding Cane qualified as an expert, and by relying on Cane’s opinion.

We affirm.

FACTS

In 2010, Wife purchased a house (the House) for $84,000. The House was held

in Wife’s name, as a single woman, without a mortgage. In 2012, Wife obtained a five-

year home equity line of credit (HELOC) of approximately $63,000 on the House. Wife

made interest-only payments on the HELOC.

Husband and Wife married in May 2014. Upon marrying, Wife wanted a joint

bank account with Husband. From their joint bank account, Husband and Wife

continued the interest-only payments on the HELOC. In 2017, as the five-year deadline

for the HELOC approached, Husband and Wife obtained an $85,000 mortgage to pay

off the HELOC and purchase a car. It was Wife’s idea to apply for a mortgage because

the HELOC “was a five-year term loan, and [the bank] did not want to renew or extend

the loan.”

Wife’s father is a financial advisor, and he advised Husband and Wife

throughout the process of obtaining a mortgage. According to Husband, Wife needed

Husband’s income and credit score to qualify for the mortgage. According to Wife, she

did not need Husband to qualify for the mortgage because she held sufficient equity in

the House. Husband and Wife jointly applied for the mortgage.

2 As part of the mortgage process, Wife changed the deed for the House to reflect

it was held by Husband and Wife, as community property. Husband and Wife jointly

made the $675 a month payments on the mortgage, $283 of which was principal.

Husband and Wife separated in June 2018. Husband moved out of the House in August

2018. At trial, in closing argument, Wife argued a theory of undue influence to support

her assertion that there was not a transmutation.

The family court found the House was community property. The family court

reasoned, “[Wife] signed a grant deed transferring the property from herself as a single

person to both parties as husband and wife with a community property interest and that

the parties obtained an $85,000 loan secured by the property to pay off the HELOC.

Both parties are now on title and are subject to the new mortgage. Here, I find that this

was a proper transmutation as there was a writing signed by [Wife] agreeing to transfer

the home, they both agreed to be financially responsible for the loan, and there was no

evidence of any undue influence by [Husband]. I find that [Husband] has overcome any

presumption of undue influence as he agreed to take on . . . the debt that was [Wife’s]

debt from the HELOC in exchange for having his name on title. While both parties may

not have known exactly what all of the terms meant, they both knew that the home was

going from [Wife’s] home where she was solely responsible for a loan to their home

where both were responsible for the loan. Therefore, as of 5/4/17, I find the parties

have a community property interest in the home.”

3 DISCUSSION

A. TRANSMUTATION

Wife contends substantial evidence does not support the finding that Husband

overcame the presumption of undue influence. We begin our analysis with whether the

presumption applies in this case.

“[C]ourts have long held that when an interspousal transaction advantages one

spouse, public policy considerations create a presumption that the transaction was the

result of undue influence.” (In re Marriage of Starr (2010) 189 Cal.App.4th 277, 281.)

“[T]he ‘advantage’ which raises a presumption of undue influence in a marital

transaction . . . must necessarily be an unfair advantage.” (In re Marriage of Burkle

(2006) 139 Cal.App.4th 712, 730.) A lack of consideration from one spouse in the

transaction is an example of an unfair advantage. (Ibid.) We apply the substantial

evidence standard of review. (In re Marriage of Rossin (2009) 172 Cal.App.4th 725,

734.)

In 2017, as the five-year deadline for the HELOC approached, the bank declined

to extend or renew the HELOC. Thus, Wife needed to obtain a loan. Wife decided to

apply for a mortgage. Wife needed Husband’s income and credit score to qualify for

the mortgage. In exchange for adding Husband to the deed for the House, Wife was

given Husband’s liability on the mortgage as well as his joint payments on the

mortgage. Moreover, for the period that the House was Wife’s separate property, the

entirety of that separate property value remains with Wife. Husband did not receive

half of Wife’s separate property. Rather, Husband will receive half of the value that the

4 House accrued from the time it became community property in May 2017. (Fam. Code,

§ 2640, subd. (b).)

Husband did not receive a windfall when the House became community

property. Husband became liable for the mortgage and any issues with the House, while

Wife retained the separate property value of the House. Because Husband did not

receive an unfair advantage, the presumption of undue influence is inapplicable.

Wife asserts that Husband received an unfair advantage because, in 2017, when

the mortgage was obtained, the House appraised for $235,000 with an $85,000

mortgage, creating $150,000 in equity. Wife contends Husband will receive half of that

equity, e.g., $75,000, which is a windfall. Wife is mistaken.

The family court’s order reads, “For [Wife], she is entitled to a reimbursement

for her separate property claim under [Family Code section] 2640. I find that at the

time of the transfer, the [House] had a fair market value of $235,000. At the time the

[House] was transmuted then, she would have a separate property claim of $235,000

less $63,856.16 for the HELOC, for a total of $171,143.84.” Thus, the family court

awarded Wife all the equity in the House at the time of the transmutation. Husband will

receive only half of the value the House accrued starting in May 2017.

Although the undue influence presumption does not apply, if we assume the

presumption did apply, then Husband overcame the presumption. We continue to use

the substantial evidence standard of review. (In re Marriage of Burkle, supra, 139

Cal.App.4th at p.

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In Re Marriage of Rossin
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