Reimbursement Claims

Tracing Separate Property in a Divorce

California Family Law provides, generally, that all assets acquired during the parties' marriage are characterized as community property and will be divided 50-50 between the parties to a legal separation or dissolution action. Reimbursement claims, however, can, effectively, change that 50-50 split in an action to divide marital property or community property. Section 2640 of the Family Law Code provides that traceable separate property assets "contributions" to the acquisition of community property are reimbursable at dissolution or legal separation absent a written waiver. Failure to seek Reimbursement Claims can result in a party taking substantially less assets than he or she may be entitled to in an action dividing the community estate. For example, if separate property assets (assets acquired by a party prior to marriage or through inheritance) were contributed to the acquisition of real property during the marriage, the party seeking reimbursement of those assets, who can prove those claims, is entitled to take his or her reimbursement award "off of the top" of the community property item in question before the community property interest in that item is divided.

Burden of Proof From Party Seeking Reimbursement

The party seeking a reimbursement claims bears the burden of proving such claims under Section 2640. Thus, adequate documentation and records tracking the use of that party's separate property to acquire the community property in question are critical to the success of a reimbursement claim.

California is a Community Property State

California Family Law code states, as a default, that all real property and other assets acquired in a marriage are generally community property. The burden of proof lies within the claimant to show otherwise.

Important to Disclose Any & All Separate Property Assets

It is paramount that you disclose to your attorney any separate property assets which may have been used to purchase or acquire property during the parties' marriage. You should choose a California Family Law lawyer who understands the specific law concerning reimbursement claims and knows how to properly assist the client in pursuing such claims.

Epstein Credits

Other reimbursement claims include Epstein credits, named after a California Supreme Court case by the same name. Under this doctrine, a party who uses separate property to pay on community debt obligations, after the parties are separated, has the right to be reimbursed for the contributions he/she made. Exceptions to this rule are where the parties agreed that the contributing party would not be reimbursed, or where the separate property payments were intended as a gift or as child support or spousal support

Jonathan Chance Divorce & Family Law Attorney

Jonathan Chance, at JC Law Offices, knows how important these issues can be. He is a qualified Family Law Attorney who has experience in developing unique and winning strategies. Attorney Chance will thoroughly examine your information and advise you how to best proceed with your potential reimbursement claim.

Attorney Chance has represented clients from all over the bay area. His office is centrally located in San Mateo, California. You may call, email, or FAX him via the contact information.