SOTELO VS. SOTELO (CHILD CUSTODY)
Sep 30, 202525-42702 · 88638-COA · Nevada (SCOTN/COA)
Affirmed in part, reversed in part, and remanded.Paulina and Randy Sotelo married in October 1997 and had three children, two of whom were still minors when the case went to trial. Both spouses worked during the marriage, but in 2018 Paulina developed chronic diastolic heart failure that prevented her from working, and she began receiving permanent disability benefits.
In 2005, the couple bought a house for $350,000 using community funds (money belonging to the marriage). However, the purchase documents — the grant, bargain, and sale deed and the deed of trust — named only Paulina as the owner and described the house as her "sole and separate property." Randy also signed a quitclaim deed giving up his interest in the house to Paulina at the time of purchase. Despite this paperwork, both parties agreed that community funds were used to pay the mortgage during the marriage.
Randy filed for divorce in February 2023. Several issues were contested: who would have custody of the children, whether the house belonged solely to Paulina or to the marriage, and how alimony (financial support paid by one ex-spouse to the other) should be structured. The district court gave Randy primary physical custody of the younger child, G.S., and gave the parties joint physical custody of E.S.
On the house, the district court ruled it was community property, ordered it sold to pay off the couple's community debt, and ordered the remaining money split equally. The court also awarded Paulina alimony of $750 per month — at first for 11 years, later extended to permanent (indefinite) alimony — and refused to give her the alimony as a single lump-sum payment. The alimony payments were also set to begin only after the home was sold.
Paulina appealed. On the question of who owned the house, the Court of Appeals agreed with the district court. Although the deeds and the quitclaim deed might ordinarily have suggested the home was a gift to Paulina (and thus her separate property), Paulina never actually submitted those documents as evidence at trial. More importantly, she had told the court in her pretrial papers that the house was put in her name because Randy was "financially unstable" at the time — meaning the transfer was done for financial reasons, not as a gift. She also agreed at trial, when the judge asked, that the home was a community asset. Because property bought during a marriage is presumed to belong to the marriage unless proven otherwise by strong evidence, and Paulina did not overcome that presumption, the court upheld the community-property ruling.
However, the Court of Appeals found problems with how the district court handled the alimony and the sale of the home. The district court had refused to consider the value of the home — and therefore how much equity (the home's value minus what was owed) the couple had — because it was dissatisfied that the value estimate came from the Zillow website rather than a formal appraisal. But both parties had provided Zillow-based figures, neither objected, and they effectively agreed those figures were reliable. The evidence indicated the home had roughly $237,000 in equity against only about $27,000 in community debt.
Paulina had testified that on her monthly disability income of $1,487 she could not afford to rent a house or apartment in Las Vegas even with child support and periodic alimony, but that she could afford the existing monthly mortgage of $1,268.47 and keep the family home for herself and the children. She had asked the court for a lump-sum alimony award that would offset Randy's share of the home's equity, in exchange for giving up any claim to Randy's retirement benefits. The Court of Appeals concluded that the district court did not give adequate consideration to her request to keep the home, did not properly weigh the hardship of losing it when she might be left without reasonable housing, and did not properly analyze whether lump-sum alimony would be more appropriate. The court sent these issues back to the district court to reconsider.