The house is his separate property because it was acquired in his name before the marriage. However, if LZ is getting a divorce, she would be entitled to some interest based on the contribution of community property funds to the mortgage payment and any post-marriage improvements.
All property acquired during marriage and before separation, other than by gift or inheritance (Ca Fam § 770(a)(2)), is presumptively community property. [Ca Fam §§ 760, 771(a)]
Income derived from a spouse's labor, time or skill during marriage and prior to separation is community property. Such "earnings" includes any compensation for services, regardless of the form in which it is received.