Labato v. Labato

HURLEY, Judge.

The principal issue on appeal is whether the trial court erred by impressing an equitable lien on the marital home in favor of the wife’s parents who were not parties to the litigation. We answer in the affirmative and reverse.

In the dissolution action below, the wife claimed entitlement to a special equity because of several loans from her parents. She claimed that the loan proceeds had been used to improve various homes owned by the parties during their marriage. The trial court credited this testimony and awarded the wife a $25,500.00 special equity.1 Subsequently on…