Pro Tanto

After marriage, when the Community pays Principal on the Acquisition Loan of the Separate Property, the Community acquires a “Pro Tanto” interest in the change in value of the Property.  This interest is a ratio of how much the Community paid towards Principal as a percentage of the acquisition price.  For example, if the original purchase price was $300,000 and the Community paid $50,000 in Principal, then the Pro Tanto interest in the change in value of the property during the marriage would be 16.67% ($50,000/$300,000).