California Family Code §2640 Explained

California Family Code §2640 grants spouses a statutory right to reimbursement for separate property contributions made toward the acquisition of community property.

Understanding FC §2640 Separate Property Reimbursements

Under California Family Code §2640, a spouse who contributes separate property funds to acquire, improve, or down-pay a community property asset has a mandatory statutory right to reimbursement upon divorce, unless a written waiver was executed.

What Qualified for §2640 Reimbursement?

• Down payments on the marital home made with pre-marital savings or inherited funds.
• Principal payments made on a community mortgage using separate funds.
• Capital improvements made to community real estate using separate money (e.g., remodeling kitchen with inheritance).

The "DIP" Rule (Down Payment, Improvements, Principal)

Reimbursement under §2640 is limited to Down Payment, Improvements, and Principal payments (DIP). It does NOT include payments made for mortgage interest, property taxes, homeowner's insurance, or maintenance.

Cap on Reimbursement

Reimbursement cannot exceed the net equity value of the asset at the time of division, and no interest is added to the separate contribution amount.

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