McCoy v. Ware , 25 Wash. App. 648 ( 1980 )

Roe, J.

(specially concurring) — Presently it is a rule that payments made from community funds for the reduction of a mortgage on a spouse's separate real estate give the community a lien for the dollar amount of the payment. In re Estate of Smith, 73 Wn.2d 629, 440 P.2d 179 (1968); Hamlin v. Merlino, 44 Wn.2d 851, 272 P.2d 125 (1954).

Although that law of previous Washington cases would be appropriate in a relatively stable economy, yet the time has come when we should take judicial notice of the persistent and. unremitting inflation which may well become worse. It is doubtful that the statute, RCW 26.16.010 et seq., which in fact provides that the rents, issues or profits of separate property will remain separate, contemplated the economic factor of inflation.

Unlike a mortgage or a lien where, under then-existing economic conditions, a fixed time is set for payment, a judgment in favor of the community for the amount of money advanced many years previously would not be a realistic return in real value of the purchasing power for the money invested. Inflation is now at 19 to 20 percent. A sum of money invested at compound interest at that rate would double in less than 4 years.

Where separate property is improved with community funds or services, I would hold that the community should share in the present value of that property, which is due to inflation or deflation, proportionately to money or services contributed.