In Re Marriage of Epstein

Summary

Husband paid the mortgage, taxes and insurance on the family home from post-separation earnings, and used $2,250 of community funds to pay estimated tax on his separate post-separation income. The Supreme Court held that the no-reimbursement presumption does not apply after separation, so husband may be reimbursed unless the payments in reality discharged his support duty. It remanded that factual question, held the community must be reimbursed for the $2,250, and construed the equalization order to account for capital gains tax on the court-ordered sale of the residence. It affirmed the $750 monthly spousal support amount but reversed the termination of support jurisdiction for lack of evidence the wife would be self-supporting.

What it means for the financial analysis

Post-separation payments on community obligations should be scheduled separately from pre-separation payments, with attention to whether each payment was in substance support, since that decides reimbursability. The case also shows that community funds used for taxes on separate income are a reimbursement item, and that net income findings for support in this case rested on actual after-tax figures, including taxes owed on practice income.

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