What is Family Code 2640?
Under California Family Code section 2640, reimbursement is limited to down payments, payments for improvements, and payments that reduce the loan principal used to finance a purchase or improvement of property. The reimbursement amount cannot be more than the net value of the property at the time of division.
What is a Moore Marsden calculation?
The formula used by California courts to calculate each party’s interest in real estate is known as Moore Marsden or Moore-Marsden or Moore/Marsden. These are the names to two (2) California cases involving; you guessed it, dividing real property at divorce when one spouse purchased the property before marriage.
What is transmutation of property in California?
Transmutation means to change form, and in the context of California, Orange County divorce cases, transmutation means that property has changed form or character in one of the following ways: Property changed from one party’s separate property to the other party’s separate property.
What are Jeffries credits?
Jeffries Credits, in short, is reimbursement for the mortgage payment on a home the other spouse has sole possession of after separation. A case called In Re Marriage of Jeffries held that payments made on a mortgage by the spouse who does not have exclusive possession of the home is entitled to reimbursements.
What are Watts charges?
Watts charges are named after a 1985 California divorce case called In re Marriage of Watts. Watts charges are basically one spouse’s obligation to the other spouse for one half of the reasonable value for the exclusive use of a community asset after separation.
What is a Moore Marsden claim?
The decisions of the Moore and Marsden cases are the basis for what is called the Moore Marsden analysis. The Moore Marsden analysis applies a formula to determine what portion of a house is community property due to mortgage payments made during marriage with community funds.
What is marriage of Moore?
In In re Marriage of Moore (1980) 28 Cal. 3d 366, an unmarried woman bought a house in 1966 by making a down payment and securing a loan for the balance of the purchase price. She then married, and the loan payments were made with community funds until she separated from her husband in 1977.
Can you convert community property to separate property?
The change in character from community property to separate property and vice versa is known as “transmutation.” Transmutation allows the parties to transform the character of property in different configurations, including: From separate property of one party to the separate property of the other party.
What are Epstein credits CA?
An Epstein credit is a right to be reimbursed by the other spouse for one-half of separate property money used after the date of separation to pay a community debt.
Are Epstein credits still legal?
Epstein credits and Watts payments are discretionary. This means they are not automatically awarded. California family courts must consider each spouse’s income, the number of children in the home, and other factors before ordering Epstein credits and Watts charges.