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Epstein Credits:
There are many ways in which you can help. One such way is to keep your files well organized to support "Epstein credits" to which you may be entitled. Debts that exist as of the date of separation (DOS) are generally community debts regardless of which party incurred them. On the other hand, income earned by either party after the (DOS) is that person's separate property. To the extent income earned after the DOS (therefore separate income) is utilized to pay community debts, then (with certain exceptions) you would be entitled to reimbursement at the time of the division of community property. This reimbursement is defined as an "Epstein credit." It is helpful to think of it as separate property being used to pay community debts.
In order to prove these credits, you need to keep copies of the bills showing the amount of the indebtedness close to the DOS, with monthly statements thereafter and the cancelled checks that were used to make payments following the DOS. You would then be in a position to fill in the "Epstein Chart," a copy of which is attached as Exhibit "D" hereto. An additional "accounting" problem arises when charges on a joint account are made after the DOS. The problem is that the allocation of the interest assessed against the separate charges as distinguished from the community charges is very difficult, if not impossible, to determine. The same problem arises when charges and subsequent payments after the DOS occur. Frequently, the judge in your matter will arbitrarily allocate the interest between the community and separate debt. To avoid this problem, it is best to make charges after the DOS on accounts which have no outstanding community indebtedness.
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