“In the division of the community estate, 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 must be reimbursed for the party’s contributions to the acquisition of the property to the extent the party traces the contributions to a separate property source. The amount reimbursed will 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. [Fam. Code, § 2640, subd. (b)] “Contributions to the acquisition of the property” include down payments, 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. [Fam. Code, § 2640, subd. (a)]”
“Under Fam. Code § 2640, a spouse has a right to receive reimbursement at the time of dissolution for any separate property payments for improvements to community property, unless there has been a written waiver. [In re Marriage of Walrath, 17 Cal. 4th 907, 72 Cal. Rptr. 2d 856, 952 P.2d 1124 (1998) (holding that the statute allows for reimbursement of payments for home improvements and payments that reduce the principal of a loan used to finance home improvements, but appreciation is not recoverable)]”
“A party’s reimbursement is limited to the amount expended without interest or any adjustment for change in monetary values. The amount reimbursed may not exceed the net value of the property at the time of division. [Fam. Code, § 2640, subd. (b)] If the property increases in value, any increase is community property and is divided equally between the parties.”
“Under Fam. Code § 2640, reimbursement rights apply when an immediate sale of the family home is ordered by the court. However, where the spouse who does not reside in the home (the “out spouse”) has a separate property interest, and a deferred sale of the family home is ordered, the court may consider the parties as tenants in common and may order proportionate ownership in the residence. This may result in the spouse who is entitled to reimbursement receiving a percentage of the ultimate sale proceeds that takes into consideration the appreciation or depreciation of the property at the time of sale. [In re Marriage of Braud, 45 Cal. App. 4th 797, 53 Cal. Rptr. 2d 179 (1st Dist. 1996), referring to a deferred sale order pursuant to Fam. Code, §§ 3800 et seq.]”
[California Civil Practice Family Law Litigation [certain citations omitted]]
