Why are they called Epstein credits?

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.

Are Watts credits mandatory?

While Epstein credits are generally viewed by trial judges to be mandatory reimbursements, allowing Watts and Jeffries credits is discretionary.

What are Watts credits?

Named after the 1985 Marriage of Watts case, a Watts charge (sometimes called a Watts credit) applies in divorce cases when one spouse uses community assets after separation. The spouse that is not using the real property can make a charge against the other spouse for one half of the community asset’s use.

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 is an Epstein credit?

Many people hear the phrase “Epstein credits” and “Watts charges,” 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.

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.

Should you marry someone with bad credit?

Marrying a person with a bad credit history won’t affect your own credit record. You and your spouse will continue to have separate credit reports after you marry. However, any debts you take on jointly will be reported on both your and your spouse’s credit reports.

Does your spouse’s credit affect your credit?

Getting married and changing your name won’t affect your credit reports, credit history or credit scores. One spouse’s poor credit won’t impact the other spouse — unless you jointly apply for a loan or open a joint account. Married couples do not have to apply for credit together.

Will I inherit fiance’s debt?

Marrying Debt The first and most important thing to know is you will not automatically become responsible for your partner’s pre-existing debt when you get married. The debts you took out in your name will remain your debts. The debts your partner took out in their name will remain theirs.

Does divorce lower your credit score?

Actually filing for divorce doesn’t directly impact credit scores, but if you have late or missed payments on accounts as a result, it may negatively impact credit scores. While a divorce decree may give your former spouse responsibility for a joint account, that doesn’t let you off the hook with lenders and creditors.

How do I get my ex wife off my credit report?

The only way to be certain your ex-husband’s credit won’t affect yours in the future is to contact your lenders and ask them change the contracts to remove either you or your husband from responsibility from any open joint accounts.

How do I repair my credit after divorce?

Repairing that credit won’t happen overnight, but every good financial decision will put you one step closer.Live on a Budget.Keep Tabs on Your Credit Score.Address Joint Debts with Your Ex-Spouse.Deal With Bills You Can’t Afford to Pay.Change Your Last Name Before Getting New Credit.Get Credit of Your Own.

What happens to your credit when you get divorced?

And you may be wondering if a divorce affects your credit reports and credit scores. First, filing for divorce – or the actual divorce proceedings – will not impact credit reports or credit scores. If you and your former spouse have kept separate finances, you’re likely to see no direct impact on them either.

Should I pay off credit cards before divorce?

If you have any joint debt with your spouse and you can afford to, we highly recommend paying off all marital debt, even before you draw up the divorce papers. For example, if you have $5,000 in joint credit card debt, pay it off before the divorce is finalized.

Can I buy a house with alimony?

You can list both your child support payments and your alimony payments as streams of income when you apply for a mortgage as long as you have a documented history that your spouse makes his or her payments on time. Also, be sure to get your documents in order whether you’re the one paying or receiving alimony.