Drahos Calculation

This is a formula used to calculate a community lien on a property. The calculation is C + [(C/B) x A] where C = contributions to principal, B = purchase price, and A = appreciation.  Each spouse is entitled to half of the resulting calculation. Put another way: it requires the property-owning spouse to pay the other spouse half the community’s contributions in principal plus a percentage of the appreciation in proportion to the community’s contribution to the overall purchase of the home.