Watts charges are named after a 1985 California divorce case called In re Marriage of Watts . Watts charges are basically one spouse’s obligation to the other spouse for one half of the reasonable value for the exclusive use of a community asset after separation.
What are Watts charges?
What about Watts Charges? Watts Charges (sometimes also called “Watts Credits”) is a rule established by the court in In re Marriage of Watts (1985) 171 Cal.App.3d 366, 217 Cal.Rptr. 301 (“Watts”). This applies in divorce cases where a spouse, after separation, has exclusive possession and use of a marital property.
What are Watts charges and Epstein credits?
A spouse who is not exclusively enjoying specific community property must request Watts Charges and a spouse who is exclusively paying for community property from separate and independent funds must request Epstein Credits. Even when requested, these charges and credits are discretionary and are not automatically awarded.
Do I have to pay Watts charges if I separate?
If you and your spouse separate and you exclusively remain in the family home after that separation, you may be asked to pay Watts Charges. Watts Charges are requested when one spouse exclusively uses community property after a separation.
How do you prove a Watts charge in divorce?
To prove a Watts charge, a spouse needs to show evidence of the value of an asset, such as a property’s monthly rental value. To make a Watts charge, a party must give a prior written notice to the other party of the intent to seek a credit for post-separation use of community assets.
How are Watts charges calculated in California?
The Watts charge is basically calculated based on the value attributed to the actual use of the property. For example, if the community asset is a home that one of the spouses is living in, exclusively, then the other spouse can charge the spouse living in the house for one half of the value ascertained for the house.
Are Watts credits mandatory?
Epstein credits and Watts payments are discretionary. This means they are not automatically awarded. California family courts must consider each spouse's income, the number of children in the home, and other factors before ordering Epstein credits and Watts charges.
What are Epstein and Watts credits?
Watts and Epstein credits/charges refer to reimbursements due at property division. For example, if you own a family home, and one of you vacates, leaving the other person in there to pay the mortgage (or, if you vacate, but still pay the mortgage while the person lives there), you may be due reimbursements.
What are Watts in divorce?
A Watts Charge is a "charge" against the other spouse for one-half of a community asset's use after separation. This value attached to the use is the foundation for a Watts Charge. It can apply to real property, a car, and just about any asset that has a use value.
Does a restraining order affect Watts Charges California divorce?
Domestic violence and restraining orders can complicate California divorce proceedings, affecting everything in your case from spousal support to child custody and property division. California is a no-fault divorce state.
What is the importance of Watts Law?
Applications of Watts law When the current and the voltage of the source are given, the values can be multiplied. The power requirement of a building can be measured using the Watt formula. It is important to estimate the total power requirement when designing the wiring of a building.
What are Watts claims?
Watts charges are named after a 1985 California divorce case called In re Marriage of Watts. Watts charges are basically one spouse's obligation to the other spouse for one half of the reasonable value for the exclusive use of a community asset after separation.
How do you find the wattage of a charge?
To make a Watts charge, a party must give a prior written notice to the other party of the intent to seek a credit for post-separation use of community assets. A party should give notice to another party of the intent of a Watts charge as soon as possible in litigation.
What are Jeffries credits?
Watts and Jeffries Credits. We speak in terms of "Watts credits" when one party has the exclusive beneficial use of community property. When money is owed on that asset, "Jeffries" reimbursements or set-offs for the payment of that debt also come into play.
What is the hardest stage of divorce?
A: The most difficult stage of divorce can vary from person to person. However, many people find the depression stage to be the most difficult. This is when couples come to terms with the fact that their marriage is ending, and they have to start adjusting to a new life.
What compensation wife gets after divorce?
There are two types of monetary support which the higher earning spouse usually has to give to the other one -- interim maintenance under which the amount is given during the pendency of court proceedings and the second is the permanent alimony, which is given at the time of the passing of the final decree.
What are the 3 stages of divorce?
How to get a divorce – the three key stages#1 – The Divorce Petition.#2 – Decree Nisi.#3 – Decree Absolute.
What is Watt credit?
A Watts charge is an obligation to the other spouse for one-half of the reasonable value for the exclusive use of a community asset after date of separation. So, if the parties own a house, the monthly mortgage payment is a community debt.
What is the Gavron warning?
A Gavron Warning is a notice issued by the court to a spouse receiving support that he or she is expected to become self-supporting. Typically, a Gavron Warning will be issued at the time the spousal support order is made.
Are Watts charges retroactive?
This notice simplifies issues at trial. It makes it known that Watts Charges are within the reasonable expectations of the spouses. Like Epstein Credits, the earlier that a claim for Watts Charges are raised the better. The claim will be retroactive to when written notice was given.
What are Jeffries credits?
Watts and Jeffries Credits. We speak in terms of "Watts credits" when one party has the exclusive beneficial use of community property. When money is owed on that asset, "Jeffries" reimbursements or set-offs for the payment of that debt also come into play.
What is the purpose of Watts charges in California?
Watts charges and Epstein credits are two ways the California courts strive to keep financial matters and asset division split evenly, 50/50, between two parties.
How to prove a Watts charge?
To prove a Watts charge, a spouse needs to show evidence of the value of an asset, such as a property’s monthly rental value.
What is Watts credit?
Watts Charges. Named after the 1985 Marriage of Watts case, a Watts charge (sometimes called a Watts credit) applies in divorce cases when one spouse uses community assets after separation.
When should a Watts charge be given notice?
A party should give notice to another party of the intent of a Watts charge as soon as possible in litigation. Failure to give notice can lead to the courts concluding that the Watts charge claim is not within the reasonable expectations of the other party.
Can you get a reimbursement for a divorce in California?
In a divorce case in California, the courts may issue a reimbursement to one spouse for community expenses paid after separation but before trial. For example, if one spouse makes a mortgage payment after separation, the courts may issue a reimbursement for the other spouse’s share of the expense.
What is Watts charge?
If the couple have one car, usually only one spouse drives it during the separation. However, being the sole user of community property during separation may come with a price, and that price is known as Watts charges. Watts charges are named after a 1985 California divorce case called In re Marriage of Watts . Watts charges are basically one spouse’s obligation to the other spouse for one half of the reasonable value for the exclusive use of a community asset after separation.
What happens to community property in California?
California is a community property state, so when you file for a divorce, the family law court considers income and property acquired during the marriage (with some exceptions such as inheritances) to be the property of both parties. It’s the court’s job to divide that property equally if the couple can’t reach an agreement with the help of their California family law attorneys. Part of that fair distribution may include Watts charges when one of the spouses continues to use community property after a couple has separated but before a divorce is granted. Suppose you and your spouse file for divorce, and your spouse continues to live in a home you both purchased after you were married. Is it fair that your spouse continues to enjoy using the community property of the house for months or even years while you move?
Do Watts charges automatically apply?
Watts charges are not awarded automatically and must be requested by the spouse who is not using the property. Even then, it is not a sure thing that Watts charges will be awarded.
Does the court have flexibility in ordering payment of Watts charges?
The court has flexibility in ordering payment of Watts charges. It can take several factors into consideration including
Can Watts charges offset each other?
Also, Watts charges and Epstein credits, where a spouse seeks to be reimbursed for payments made on community property, can sometimes offset each other.
What is Watts charge?
A Watts Charge is a "charge" against the other spouse for one-half of a community asset's use after separation. This value attached to the use is the foundation for a Watts Charge. It can apply to real property, a car, and just about any asset that has a use value.
What are Watts Credits or Watts Charges?
Sometimes, they are called Watts Credits. Sometimes, they are called Watts Charges.
How do you prove a Watts Charge?
Watts Charges require admissible evidence on the value of an asset's use. Using the family residence as an example, that is the residence's monthly fair rental value. Can a spouse really testify to such a thing? Yes, but it will be far smarter to have an expert witness do so. The spouse may not be able to establish that he or she has the necessary competence to give an opinion on such a subject. Licensed and certified real estate appraisers are often used for such a purpose.
What to do if money is commingled in divorce?
Regardless of the asset and the payment, good record keeping is a must. One way to avoid this hassle is to pay community debts or expenses from community sources.
Can a spouse have an expert witness?
Yes, but it will be far smarter to have an expert witness do so. The spouse may not be able to establish that he or she has the necessary competence to give an opinion on such a subject. Licensed and certified real estate appraisers are often used for such a purpose. The choice of expert depends on the asset.
Is Watts Charge offset?
Another common offset exists between a Watts Charge and an Epstein Credit. For example, if a husband exclusively occupies the family residence but that husband also makes the entire mortgage payment, those two may offset each other. If the fair rental value is $3,000 per month and the mortgage payment is $3,000 per month, that may be a complete offset. But one being less or more than the other may result in a partial offset.
