What are Watts and Epstein credits?
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What are Watts and Epstein credits?
Many people hear the phrase \u201cEpstein credits\u201d and \u201cWatts charges,\u201d and wonder what that is all about. 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 Watts credits mandatory?
While Epstein credits are generally viewed by trial judges to be mandatory reimbursements, allowing Watts and Jeffries credits is discretionary.
Why are they called Epstein credits?
This is known as an Epstein credit, and it’s named after the 1979 California family law case of In re Marriage of Epstein. California Family Code section 2626 does not codify all that decision, but its wording supports Epstein.
What Is Marriage of Epstein?
In 1979, the landmark California Supreme Court case, \u201cIn Re Marriage of Epstein,\u201d established guidelines for reimbursements of separate property payments (normally from post-separation earnings) on community property debt.
What does community debt mean?
Community debt is debt incurred during a marriage by a spouse which generally benefits the marriage and both spouses may be liable to pay. In a community property state, a debt incurred for the common interest of the spouses or for the interest of the other spouse is a community debt.
