Reimbursement/ BE

Question 1

Reimbursement

Answer 1

• arises when one estate provides a benefit that increases the value of another estate
• can occur when the C estate provides a benefit that increases the value of one of the spouses’s separate estate
• can also occur when a sep estate increases the value of the C estate
• one case can have both claims and they will offset each other
• claim is subject to equitable principles
• court can consider factors outside the specific transaction at issue
• proper measure is the enhancement of the benefitted estate
• measure at time of cessation of marriage whether death or divorce

Question 2

Business Entities

Answer 2

• Corps, parts, LLCs are considered a single entity
• prop in those entities isn’t considered com or sep prop
• prop within those entities is considered corp/business prop of the entity

Question 3

inception of title corp

Answer 3

• when spouse’s rights in shares of stock arose
• prop owned or claimed prior to marriage is sep prop even if later paid for by C estate
• then C estate has a reimbursement claim

Question 4

distributions

Answer 4

• cash dividends from SP stock are CP
• exception for return of capital- likely separate prop
• distributions that are payments of earnings and income are considered income and therefore CP

Question 5

O&G mineral interests

Answer 5

-sep prop

royalty int are also sep prop

Question 6

stock dividends and stock splits

Answer 6

• stock in a publicly traded co may pay out in a stock split

- in this situation, the extra shares received during marriage are sep prop

Question 7

capital gains

Answer 7

-an increase in the value of sep prop is considered sep prop