Am I Entitled to Reimbursement in my Divorce?

On behalf of Powell Law Offices, P.C. posted in divorce on Thursday, July 28, 2016.

In some divorce cases, you might be entitled to a reimbursement if you or your spouse have a separate estate in addition to the community estate (the property you have in common in the marriage). If, for example, you spent capital from your separate estate towards your spouse’s separate estate or the community estate, you are owed restitution for the funds you spent. The reimbursement would be dollar-for-dollar if you contributed to your spouse’s estate from your own private estate and would be fifty percent if you contributed from your private estate to the community estate.

Here are some examples of instances in which you might qualify for a reimbursement:

• If you’ve made payments from your separate estate or the community estate towards debt your spouse acquired before the marriage. Ex: money from the community estate goes to pay for a home and mortgage your spouse acquired before the marriage.
• If you’ve made payments from your separate estate or the community estate towards debt on property secured by your spouse during the marriage by gift or inheritance. Ex: your spouse inherits a home with a mortgage and you contribute by paying from your separate estate.
• If you’ve made payments from your separate estate or the community estate to reduce debt your spouse incurred from their separate estate during the marriage. Ex: Payments on a home equity loan taken out during the marriage on a spouse’s home that spouse owned prior to marriage are made from community funds or your separate estate.
• If you’ve made payments from your separate estate or the community estate to acquire or make improvements on property from your spouse’s estate. Ex: your spouse decides to renovate a home they purchased before the marriage and uses money from the community estate.
• If you’ve made payments from your separate estate or the community estate to refinance debts occurred from your spouse’s separate estate.

It is important to remember that in almost all cases, wages or employment income earned during a marriage are considered community property.

Not all divorce cases will necessitate reimbursement, so speak to a qualified attorney at Powell Law Offices to evaluate if pursuing reimbursement is right for you.

Attorneys Lauren Powell and Suma Ruth are ready and available to answer any questions you may have about reimbursement or the divorce process.