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Reimbursement
to the Community for Educational Loan Payments
by James P. Reape, Esq.
California Family Code, section 2641 sets forth the conditions
under which a spouse must reimburse the community for educational
loan payments made from community property. In the recent case of
In re Marriage of Weiner 2003 DJDAR 367 the court of Appeal addressed
the issue of reimbursement when the education took place before
the marriage and community funds were used to repay premarital medical
school loans.
The trial court ordered reimbursement of the loans and refused to
consider any evidence on the issue of the community benefiting from
the education. Family Code, Section 2641 calls for any reimbursement
to be reduced to the extent the community received a benefit form
the education. The trial court reasoned that the Family Code provision
did not apply to educational loaned received before marriage.
The Court of Appeal concluded that the statute did apply and was
intended to cover all educational costs paid with community funds.
The case was returned to the trial court to determine if evidence
that the education resulted in additional income overcame the presumption
under Family Code, Section 2641(c)(1) that the community had not
substantially benefited form the education. If the presumption is
overcome the reimbursement must be adjusted.
For further information about this case and any other aspect of
Family Law contact the Law Offices of James P. Reape at 661-288-1000
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