FC section 2640 - 'Reimbursements for Acquisition of Property'

Reimbursing Separate Property Contributions to Community Property Assets

Family Code section 2640 is hand's down probably one of the most important of all the statutes contained in the Family Law Act. It is essentially a reimbursement statute that requires that traceable separate property contributions to the acquisition of community property must be repaid from the value of the asset before any remaining community property equity can be found to exist and hence be subject to division.

I have written about it extensively in various blogs, and you might use the onboard search engine to learn more about its importance and effects.

Family Code Section 2640 Is Critical For Reimbursements Separate Property Interests - Visit Us Here!


CALIFORNIA FAMILY CODE

DIVISION OF PROPERTY

REIMBURSEMENTS TO ACQUISITION OF PROPERTY

Family Code Section 2640

(a) "Contributions to the acquisition of property," as used in this section, include downpayments, payments for improvements, and payments that reduce the principal of a loan used to finance the purchase or improvement of the property but do not include payments of interest on the loan or payments made for maintenance, insurance, or taxation of the property.
(b) In the division of the community estate under this division, unless a party has made a written waiver of the right to reimbursement or has signed a writing that has the effect of a waiver, the party shall be reimbursed for the party's contributions to the acquisition of property of the community property estate to the extent the party traces the contributions to a separate property source. The amount reimbursed shall be without interest or adjustment for change in monetary values and may not exceed the net value of the property at the time of the division.
(c) A party shall be reimbursed for the party's separate property contributions to the acquisition of property of the other spouse's separate property estate during the marriage, unless there has been a transmutation in writing pursuant to Chapter 5 (commencing with Section 850) of Part 2 of Division 4, or a written waiver of the right to reimbursement. The amount reimbursed shall be without interest or adjustment for change in monetary values and may not exceed the net value of the property at the time of the division.

Testimonials & Endorsements

  • “Michael Peterson handled this case professionally from mediation to the final orders. Over the 15 month process he helped me view things from a non-emotional stand point which made everything less ...”

    - Demetria R.
  • “Found Mr Arnold to be very level headed and very brave to take on my divorce. He acted very professionally all the way through. Worked very well for us. We used the collaborative process."”

    - Lee M.
  • “When my divorce went to trial, it became imperative for me to hire an attorney. I live in Georgia, so I had to do over the phone consultations. When I spoke with Mr. Arnold, it just "felt right" and I ...”

    - Michelle H.
  • “Thurman is that rare attorney who promotes cooperative, non-adversarial divorce. Where many attorneys exacerbate conflict because it inevitably results in legal fees, Thurman promotes resolution and ...”

    - Stephen J.
  • “Just wanted to thank you for your website. It's encouraging to find attorneys who seem to care. I am working at organizing a conference in Las Vegas to train attorneys to 'do it right for the ...”

    - Danielle D.
/

Contact Us

Call (760) 320-7915 or Fill Out This Form

  • Please enter your first name.
  • Please enter your last name.
  • Please enter your phone number.
    This isn't a valid phone number.
  • Please enter your email address.
    This isn't a valid email address.
  • Please make a selection.
  • Please enter a message.
  • Yelp
  • Super Lawyers - Thurman
  • Avvo Rating - Superb Top Divorce Attorney
  • AV Preeminent - 2015
  • Super Lawyers - Michael
  • AAML
  • Coachella Valley's Top lawyers
  • Client Distinction - Thurman
  • California Certified (CBLS)