1. Determine the separate property and community property percentage interest in the property.

2. The separate property percentage interest is determined by crediting the separate property with the down payment and the full amount of the loan on the property less the amount by which the community property payments reduced the principal balance of the loan.

3. This sum is divided by the purchase price. The resulting figure is the separate property percentage share.

4. The community property percentage share is determined by dividing the amount in which community property payments reduced the principal by the purchase price.

5. The separate property interest in the property as valued at the end of marriage is determined by adding all the prenuptial appreciation, the amount of capital appreciation during marriage attributable to the separate funds (determined by multiplying the capital appreciation during marriage by the separate property percentage interest), and the amount of equity paid by separate funds.

6. The community property share in the value of the property is determined

by adding the amount of capital appreciation during marriage attributable to community funds to the equity paid by community funds.

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