Legal Question in Family Law in California

My wife and I are in the process of a divorce. Our home is grossly underwater and our income has dropped. We stopped making mortgage payments and the loans are in default. She has moved out about 8 months ago but I have remained in the home. She is now demanding reimbursement for WATTS charges. If the home's fair rental value is $1000 per month under normal circumstances, how would WATTS charges be calculated? Does the fact that we stopped making mortgage payments and the fact that it is in default affect WATTS calculations. Or would a home facing an impending foreclosure have a diminished market value?


Asked on 5/18/13, 2:40 pm

1 Answer from Attorneys
Anthony Roach Law Office of Anthony A. Roach

The fact that the home is underwater, meaning that the value is less than the amount owed, is not dispositive of Watts charges.

If the debt is community property, you may be entitled to Epstein credits, if you have been making mortgage payments since the separation out of separate property, which could be your paycheck since separation. That may offset any Watts charges she seeks. I suggest you speak in person with a family law attorney, because there are all kinds of rules and exceptions.

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Answered on 6/13/13, 7:32 pm


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