Reimbursement Claims

Question 1

What does Family Code 2640 provide?

Answer 1

That “contributions to the acquisition of property”, including down payments, payments for improvements, payments that reduce the principal of a loan used to finance the purchase or improvement of the property, shall be reimbursed to the party that made the contribution to the extent that party can trace the contributions to a separate property source.

Question 2

What cannot be reimbursed under FC 2640?

Answer 2

1) payments on interest on the loan, 2) payments for maintenance, 3) payments for insurance, 4) payments for taxation of the property, 5) the amount inflation of the payment.

Question 3

What is the rule in Moore/Marsden?

Answer 3

When community property is used to reduce the principal balance of a mortgage on one spouse’s separate property, the community acquires a pro tanto interest in the property.