Yours, Mine, and Ours: A Step-by-Step Guide to Reimbursement Claims in Real Estate
by Belinda Hanson and Allison Dundas2011-02-08
Historically, the family residence was the largest asset owned by a couple. In the last several years, however, real estate values in California have plummeted. Couples are now facing economic predicaments where they have little or no equity in their homes, or their house might be “upside down,” meaning that they owe more on their mortgage than their home is worth. Parties need to squeeze every dollar out of every asset; reimbursement claims take on increased importance when the overall assets have little value. This article provides a step-by-step guide to determining whether your client has a reimbursement claim in real estate in chart form. First, determine the character of the real estate. Second, isolate the nature of the potential claim, e.g., is it a separate property contribution to a community property asset? Third, prove the amount of the claim. Finally, we discuss the related relief of asking the Court to require the sale of the home before trial.
