California Divorce Info Bank Money Cost of Divorce Epstein Credits Medical/Dental Reimbursements Declaration of Disclosure Property Settlements & Division Reimbursements from Spouse Support Calculations

Reimbursements from Spouse

In divorce cases, you will sometimes hear the term “Epstein credits,” “Watts charges,” “right to reimbursement” or “credits.” These refer to payments one or both parties make after the date of separation for the benefit of either the community or the other spouse. There is no automatic right to reimbursement or credits; however, these can have a significant effect on the division of assets and obligations.

Very generally speaking, if the payment in question is not for the exclusive benefit of the payor, and not made instead of the payor’s obligation to support the other party, or the children of the parties, then the payor can request reimbursement for payments made after separation on the community debts, or the debts or living expenses of the other party.

You can assist us in preparing your case by accurately and completely gathering this information. You can reduce the amount of time that we will need to spend on your case, thus saving money on attorneys’ fees, by preparing fully the Forms provided on this website.

EPSTEIN CREDITS (more)

If, after the date of separation, Spouse A is living in a community property home and Spouse B is not, and Spouse B makes 100% of the payments on the house from his income after the date of separation, Spouse B is entitled to be reimbursed for one-half of what he pays. That reimbursement is an Epstein credit.

WATTS CHARGES

If a divorcing couple owns a home as community property, and, after the date of separation, one lives exclusively in the home, then the spouse who does not have the benefit of living in the home may request 1/2 of the reasonable rental rate from the live-in spouse as his representative share of what the community is entitled to. This is a discretionary reimbursement, and the court may find that there are equitable reasons not to allow this reimbursement.

MEDICAL AND DENTAL REIMBURSEMENTS (more)

The issue of medical and dental reimbursements usually arises after a dissolution judgment, when one spouse is not paying his or her share of the court-ordered medical/dental costs for children. If the other parent does not pay, you will generally have to go back to cour and be prepared to prove the following:

• That the medical or dental services were provided after the Judgment of Dissolution of Marriage was entered and while your child was still eligible to receive child support (i.e. under 18, or 18 but still in high school).
• That you paid the bill. You can obtain reimbursement for medical expenses paid after the child was no longer eligible to receive child support, as long as the bill was incurred during an eligible period.
• That you submitted the bill to all applicable insurance.
• That the insurance company has paid any insurance reimbursement that will be paid.
• That you requested the reimbursement from the other parent, and
• That the other parent has not paid you.

Careful record keeping at the time the expenses are incurred can help ensure that the other parent pays you on time. Additionally, if you must go to court, it will be far easier to prepare for the hearing if you have the necessary evidence. REMEMBER that if you cannot prove it, you lose it. Try to keep an accounting of the children’s expenses and the other parent’s payments to you.

If necessary, additional records can be obtained from the doctors, insurance companies, banks, etc. but it is much less ex pensive to save these items from the beginning. To help you, an expense log is included in the Forms [make Forms a link] section of this Website. To prove the elements listed above, keep the following documents:

• Original or duplicate original statement for each medical, dental or prescription expense for which you seek reimbursement.
• Copy of each insurance claim form.
• Original statement from insurance in connection with each claim, detailing the portion of each charge that will and will not be reimbursed and the amount of reimbursement.
• Your original canceled check, receipt for case or original credit cared statement establishing the amount that you paid to each doctor, dentist, pharmacist, therapist, etc.
• Copy of your letter to the other parent requesting reimbursement; [ideally, sent by certified mail with the certified mail receipt attached if you think you may have a problem getting the other parent to pay].

Here are some additional factors to bear in mind:

• Judges may be reluctant to require the other parent to share in the cost of chiropractors – before you incur large chiropractic expenses, get a written and signed agreement that the other parent will pay half, or be prepared to be responsible for the entire bill.
• If the other parent has an “HMO” or pre-paid plan in which there are no un-reimbursed expenses or the insurance carrier pays a larger portion of the expenses if the plan’s doctors or the dentists are used, try to use the plan. If you do not have adequate reason for rejecting the plan’s services, the court may deny reimbursement.
• If at all possible, reach an agreement with the other parent regarding the payment of orthodontia, counseling, or other long-term non-emergency services. YOUR JUDGMENT MAY REQUIRE PRIOR CONSULTATION OR AGREEMENT. Please review it before you begin treatment.

Send the parent bills regularly. They are more likely to be paid when the amount is not overwhelming and a judge could think it unfair that you saved up several years of expense and hit the other parent with them all at once, especially if the other parent had insurance coverage then, which is no longer applicable.