Question

SP for other SP; entitled to reimbursement unless transmutation - SP for CP; gift before 84, reimbursement after 84 - CP for SP; reimbursement or enhanced value after 75?

Answer 1

This answer explains the rules regarding reimbursement for property transfers between Separate Property (SP) and Community Property (CP) in different scenarios.

Step-by-step explanation:

SP refers to Separate Property, which is the property acquired by an individual before marriage or by gift or inheritance during the marriage. CP refers to Community Property, which is the property acquired by a couple during marriage. In the context of the question:

1. If there is a transfer of Separate Property (SP) to another Separate Property, the recipient is entitled to reimbursement unless there is a transmutation (a legal change of ownership from Separate Property to Community Property).
2. If there is a transfer of Separate Property (SP) to Community Property (CP) through a gift made before 1984, the donor is entitled to reimbursement of the value of SP after 1984.
3. If there is a transfer of Community Property (CP) to Separate Property (SP), the party receiving the SP is entitled to reimbursement or the enhanced value of the SP after reaching the age of 75.