Does Moving Out of the Family Home Impact Who Keeps the Home? – The Reape-Rickett Law Firm

For many families, it is common for one spouse to move out of the family home prior to or during a divorce or separation. There are also situations, for instance when domestic violence has occurred, where one party may be ordered by the court to vacate the family residence. It is a common myth that if one party moves out of the family residence, they give up their interest in the home. However, that is not the case. Moving out of the family residence does not affect who keeps the home. It can affect financial adjustments referred to as Epstein Credits and Watts Charges.

Epstein Credits are reimbursements one spouse can seek when they use separate property funds to pay-off community debts after separation. Originating from in re Marriage of Epstein, this case established that in California a spouse should be compensated when they use their separate income to maintain a community asset. Epstein Credits are not limited to mortgage payments and can also be applied to car payments, home insurance, and more.

Watts Charges are a financial charge placed on one spouse for the exclusive use of a community assts following separation. Established in the 1985 case, in re Marriage of Watts, the Charges allow a spouse who does not have access to the community asset to receive compensation based on the fair rental value. In this scenario the non-occupying spouse can seek compensation, often calculated as half of the asset’s fair market rental value per month.

It’s critical to note that neither Epstein Credits or Watts Charges are automatically calculated or applied, they must be requested by the parties and eligibility is determined based on records and financial contributions. Therefore, it is essential to not only keep detailed financial records, but to consult with an experienced divorce attorney to review your situation, determine the community and separate property contributions to ensure you are properly compensated or reimbursed, if applicable. To review your options and explore if you may be eligible for Epstein Credits, or Watts Charges, or both, contact The Reape-Rickett Law Firm at (888) 846-6166 or visit DivorceDigest.com.