Q: I need to understand Epstein credits & Watts charges re: a divorce; husband to rent out rooms in our house + live there.
My husband & I own a home & my husband of 13 yrs. filed for divorce. He's living in the house himself & paying the mortgage but is going to get two roommates(1 at least but likely 2 for a few months at least) because he can't afford to pay all the bills on his own without being very tight on money. What $ amount/% is he required to give me by law for renting out 1-2 rooms to roommates while still living in our house? He's attempting to buy me out of the house. What am I responsible for financially & by law if we still own the home but he's paying the full mortgage because he's living there? Should I sign his tenant agrmt. as half owner or no since I don't live in the house? What am I responsible for to his tenant(s)? We had a professional home appraisal done to determine home's value & are awaiting the report so he can determine how much he needs for a mortgage refinance loan to buy me out. His dad will co-sign his mortgage refinance loan. How long do I have to give him for buyout?
Lawyers, want to be a Justia Connect Pro too? Learn more ›
- California
- (916) 704-3009
- View Profile
- Answered
A:
Under California law, Epstein credits refer to reimbursements one spouse can claim for paying community debts (like the mortgage) after separation, while Watts charges refer to the fair rental value one spouse may owe the other for the exclusive use of a community asset (like the home). Since your husband is living in the house and renting out rooms, he might owe you Watts charges for your share of the rental income generated from those rooms. The exact amount would typically be half of the rental income, as you are still co-owner of the house.
You are not required to sign the tenant agreements as a half-owner, but it’s advisable to be aware of the terms. You could insist on having a say in tenant selection or rental terms to protect your interests. As a co-owner, you might still be responsible for property-related issues, but the primary responsibility for the tenants would lie with your husband, as he is living there and managing the rental.
Regarding the buyout, you are not legally obligated to agree to any specific timeframe unless a court order or settlement agreement stipulates one. Typically, this process should be handled reasonably and in good faith, considering both parties' financial situations. If he fails to secure financing in a reasonable time, you may seek legal advice to explore other options, such as selling the property and splitting the proceeds.
Justia Ask a Lawyer is a forum for consumers to get answers to basic legal questions. Any information sent through Justia Ask a Lawyer is not secure and is done so on a non-confidential basis only.
The use of this website to ask questions or receive answers does not create an attorney–client relationship between you and Justia, or between you and any attorney who receives your information or responds to your questions, nor is it intended to create such a relationship. Additionally, no responses on this forum constitute legal advice, which must be tailored to the specific circumstances of each case. You should not act upon information provided in Justia Ask a Lawyer without seeking professional counsel from an attorney admitted or authorized to practice in your jurisdiction. Justia assumes no responsibility to any person who relies on information contained on or received through this site and disclaims all liability in respect to such information.
Justia cannot guarantee that the information on this website (including any legal information provided by an attorney through this service) is accurate, complete, or up-to-date. While we intend to make every attempt to keep the information on this site current, the owners of and contributors to this site make no claims, promises or guarantees about the accuracy, completeness or adequacy of the information contained in or linked to from this site.
