

What To Know About Epstein Credits and Watts Charges
- Epstein Credits – In 1979, the California Supreme court decided that if a spouse pays a community debt, then he/she is owed credit on that payment. For instance, if you pay the mortgage, then your spouse is obligated to pay 50 percent of it after the divorce and vice versa. But, there’s a catch. Epstein credits don’t apply if the payments are made out of a bank account shared by both the spouses.
- Watts Charges – In 1985, the California Supreme court decided that if a spouse uses community property after separation, then he/she might be ordered to pay his/her share of the fee for using it. For instance, if your husband leaves the property and you continue to live there with your credits, then you might have to pay rent to your husband if you want to keep using it. He has the right to request for up to half of the rental value of your property. The key thing to take into consideration here is that if the rent is higher than the mortgage, then you will end up losing money if you continue to stay there after the divorce.
Both Watts Charges and Epstein Credits can be directly applied in the divorce settlement. If your spouse pays the mortgage and you stay in the home, the settlement amount will be significantly reduced by Epstein Credits and Watts Charges. You and your spouse can go for a temporary settlement that includes either your side of the mortgage payments or your stay in the property during the divorce as support. If the court allows you to stay in the property as support, you will not be given any Epstein Credits or Watts Charges. The courts can consider the income of each spouse, the number of children, and other factors before they award them. These credits and charges can be complicated to determine, so you should seek the advice of legal counsel for further explanation and assistance.
Getting divorced in California can be complicated. Download our free eBook, 18 Important Things to Know About California Divorce to educate yourself on the process.


SHARE
RECOMMENDED
Divorce And The Effect On Immigration Status
Immigration, in a few cases, can be affected by divorce. This is specially applicable for people who has immigrated to the United States based on marriage which has, until that…
Do California Courts Favor Fathers in Child Custody Cases?
If you are getting divorced in California and you wonder if fathers are favored in California child custody cases, the answer is no. Statistically speaking, when courts do not favor…















