Orange County Right Of Reimbursement In Divorce

Do You Or Your Soon-To-Be Ex-Spouse Owe Money To The Marital Estate?

As a community property state, California law dictates that when a marriage ends, each party is entitled to an equal share of the marital property. This includes items such as the home and vehicles. However, when a couple separates, before the divorce is finalized, it is likely that only one party will remain in the home, use a specific vehicle, etc. So if only one party is benefiting from the use of a community property item, that individual will technically owe the "marital community" one half of the value of the use. The simplest example is one spouse living in the home during the divorce process. If the fair market value for rent on the homestead is $1,500 a month, the spouse who resides in the homestead would owe the marital community half of the rental price, or $750 a month. This is known as a Watts charge.

Are You Entitled To A Payment From Your Marital Community Assets?

In the reverse, an Epstein credit is a reimbursement from the marital community to one spouse who has, post-separation, used his or her own funds to pay down community debts. An example is a spouse who pays off a $10,000 joint credit card bill, post-separation, from her or her separate finances. According to the laws governing Epstein credit, this party would be entitled to a $5,000 reimbursement from the marital estate.

Understanding your rights to reimbursement during the divorce process can be highly difficult. However, when you work with the lawyers at Rosen & Rosen, LLP, we will fully explain your rights and help you protect yourself now and once the divorce is finalized. Our lawyers have more than 70 years of combined experience, and we are widely known for addressing and resolving the most complex issues in family law.

Newport Beach Reimbursements Claims Attorneys

To learn more about the laws surrounding divorce reimbursement claims, contact Rosen & Rosen, LLP, to speak with one of our knowledgeable Orange, California, family law attorneys.

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