Right Of Reimbursement Survives Premarital Agreement And Quitclaim Deed

The case of Marriage of Carpenter, 2002 DJDAR 8219 was decided

July 22, 2002. The case involved the appeal of a trial court decision to order reimbursement of $415,000 to husband from the parties house on account of his separate property contribution. The parties entered into a premarital agreement proving in part that a home that husband was buying would upon marriage be deemed the parties community property. The parties did in fact marry and husband signed a quitclaim deed transferring title to husband and wife as community property. Cases like this highlight why consulting a Los Angeles prenuptial agreement lawyer before marriage is critical — the language in any premarital agreement must be precise enough to hold up in court.

Family Code, Section 2640 provides for a right of reimbursement for any separate property that is used to acquire or improve community property, unless there is a written waiver. Wife argued and the court agreed a waiver did not require the magic words “I waive reimbursement” The court stated there must be a writing which has the effect of a waiver. The premarital agreement language was deemed insufficient. This ruling underscores the importance of working with an experienced Los Angeles complex property division attorney who understands how California courts interpret separate versus community property contributions and written waiver requirements under Family Code Section 2640.

Wife also argued that the quitclaim deed, the premarital agreement and the mortgage payments show that the property was transmuted from separate property to community. The Court of Appeal stated that those documents did not affect husband’s right of reimbursement where separate property contribution is traced to its source. Property transmutation and reimbursement disputes are among the most complex issues in California divorce proceedings — if you are facing a similar situation, contact us or call (888) 851-1611 to speak with a knowledgeable divorce attorney Los Angeles who can help protect your separate property interests.