Legal Question in Family Law in California

Epstein credits

My divorce is not final yet. We own 3 California properties, all of which are owned as husband and wife, joint tenants. Two are condos, one is tenant occupied. The other condo, he moved into after he made the tenants move out. The house is our marital residence, which I have exclusive use to. However, I have recently rented it out also. The amount of rent for the marital residence is $1800. The monthly mortgage is $1718.00, monthly HOA $110.00, monthly insurance $75, monthly property taxes $$191.67. Do I owe monthly Epstein credits to him? Also, he took over the property management of the two condos. One he moved into. The other is rented out but I believe the rental amount only covers the mortgage, HOA and part of the monthly insurance. Do Epstein credits apply to this rental property?


Asked on 7/15/09, 10:04 am

3 Answers from Attorneys

Colin Greene Russakow, Greene & Tan, LLP

Re: Epstein credits

If one is not enjoying the "use" of the property, but it's being rented out, it's just an investment that bears what it bears. So potentially you owe him a share of the profits, as he does you.

Judges have discretion over these issues and results can vary, so my suggestion is get to the finish line sooner than later so that wildcard issues are minimized.

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Answered on 7/15/09, 10:27 am
PATRICK MCCRARY PATRICK MCCRARY

Re: Epstein credits

I agree in part and disagree in part with the advice of Attorney Greene. The Epstein credits are discretionary with the court, but generally should be given. As to the rental properties, each should get credit for any negative cash flow on the rental. As to the time that a property being used by one of you as a residence there may be Epstein credits but most times (I don't know about your case) the Epstein credits are offset by Watts charges, a charge for the rental value of the property. If you do not have an attorney who is experienced in Family law litigation you really need to retain one. You have a lot of value to protect. If you have an attorney who could not answer these questions, you need to seek a new attorney. I do not agree with the advice to rush this to judgment. You must have your entire case prepared to go into a trial. Haste makes waste, is an old saying and applies in preparing for trial. Good Luck, Pat McCrary

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Answered on 7/15/09, 10:52 am
OCEAN BEACH ASSOCIATES OCEAN BEACH ASSOCIATES

Re: Epstein credits

Factors such as disparate income needs to be considered before an opinion may be rendered. Contact me directly.

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Answered on 7/15/09, 1:26 pm


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