If you put your own separate money, an inheritance, a pre-marriage savings account, a gift, into the down payment or improvements on a home you and your spouse own, California Family Code section 2640 may entitle you to be reimbursed for that contribution before community proceeds are divided. Brian Cooper helps divorcing Simi Valley and Santa Clarita Valley spouses value and sell the home so the proceeds can be divided correctly.
What a 2640 reimbursement is
Family Code 2640 addresses a common fairness question: if one spouse used clearly separate money to help buy or improve the family home, should they get that money back before the rest of the equity is split as community property? Generally yes, if the contribution can be traced, the contributing spouse is reimbursed the principal amount (typically without interest or appreciation) first.
Proving the contribution requires tracing, documenting that the money was separate and where it went. That is legal and accounting work for your attorney and CPA. The agent's job is to establish what the home is worth and sell it well, so there are real proceeds to divide.
Important: This page is general information for educational purposes — it is not legal, tax, or financial advice. Every situation differs. Confirm your rights, deadlines, court procedures, and any current fees or dollar figures with a licensed California attorney, CPA, or qualified fiduciary before acting. Brian Cooper is a REALTOR®, not an attorney or tax adviser.
The steps Brian walks you through
- Your attorney and CPA trace and quantify the separate-property contribution.
- Brian provides a neutral, well-supported valuation of the home.
- Both spouses decide (or the court orders) whether to sell or one spouse buys out the other.
- If selling, list and market transparently with both spouses informed equally.
- Close escrow to generate the net proceeds.
- The 2640 reimbursement is paid first, then the remaining equity is divided per the agreement or order.
Sale or buyout, the value drives both
Whether you sell on the open market or one spouse buys out the other, everything turns on an accurate value. A buyout often uses Brian's neutral valuation as the agreed number. An open-market sale produces an actual price. Either way, an honest figure lets the 2640 reimbursement and the community split be calculated correctly.
Who you'll coordinate with
- Your family-law attorney — the 2640 claim, tracing, and the division.
- A CPA — tracing the separate funds and capital-gains questions.
- The court — if the division or sale is contested.
- Brian — neutral valuation, marketing, offers, and escrow.
How Brian makes it smoother
Divorce makes the home a flashpoint. Brian stays neutral, gives both spouses the same credible value, and runs a transparent sale, so the lawyers and CPA can apply the 2640 reimbursement and divide the rest cleanly across Simi Valley and the Santa Clarita Valley.
Equal service for both spouses
Brian serves every client equally and welcomes all buyers and sellers without regard to race, color, religion, national origin, sex, familial status, disability, sexual orientation, gender identity, source of income, or any other protected characteristic. Equal Housing Opportunity.
Frequently Asked Questions
What is a Family Code 2640 reimbursement?
A right for a spouse who contributed traceable separate property, such as a down payment, to community real estate to be reimbursed that contribution, generally without interest or appreciation, before the remaining equity is divided.
Do I get back appreciation on my down payment?
Generally the reimbursement is the principal amount contributed, not the appreciation, but specifics depend on tracing and the facts. Your attorney confirms.
How do I prove my separate contribution?
Through tracing, documenting that the money was separate and how it reached the property. Your attorney and CPA handle this; keep records of the source.
Does the agent calculate the reimbursement?
No. That is a legal calculation for your attorney. The agent's role is a neutral, accurate value and a fair sale or buyout figure.
Should we sell or do a buyout?
Either can work. A buyout often uses a neutral valuation; an open-market sale produces an actual price. Both depend on an honest value, which Brian provides.
Is this legal advice?
No. This is general information. Your family-law attorney and CPA must confirm tracing, amounts, the division, deadlines, and taxes for your situation.
