Summary of the Concept

The **Jeffries Credit** is a shorthand term used in California family law for the court’s process of reconciling two competing claims that often arise when one spouse remains in the family residence after the date of separation: the **Epstein Credit** (for paying the mortgage) and the **Watts Charge** (for exclusive use).

The Jeffries concept holds that the spouse who exclusively occupies the community residence and pays the associated monthly expenses (mortgage, taxes, insurance) is generally **not entitled to an Epstein reimbursement** unless the total monthly payments substantially exceed the **reasonable rental value** of the property. The payments and use claims typically “wash out.”

Citation and Context

The Jeffries Credit principle is derived from the appellate case that solidified this offset mechanism:

The principles governing the underlying claims originate from two other major cases:

• Epstein Credits: In re Marriage of Epstein (1979) 24 Cal. 3d 76 (Reimbursement for SP used to pay CP debt).
• Watts Charges: In re Marriage of Watts (1985) 171 Cal. App. 3d 366 (Reimbursement owed to the community for exclusive use of a community asset).

Explanation of Application

• The Occupying Spouse’s Duty (Watts Charge): The spouse remaining in the home owes the community a **Watts Charge**, which is one-half of the home’s fair rental value from the date of separation to the date of trial.
• The Paying Spouse’s Credit (Epstein Credit): The spouse who pays the mortgage, taxes, and insurance (PITI) with post-separation, separate earnings is generally entitled to an **Epstein Credit** for one-half of those payments.
• The Jeffries Offset: If the occupying spouse is also the paying spouse, the **Epstein Credit** is canceled out or “offset” by the **Watts Charge**. This prevents the occupying spouse from receiving a net reimbursement for the payments they made to essentially cover their own use.
• Court Discretion: Like Watts Charges, Jeffries Credits are discretionary. The court must find it equitable and reasonable to apply the offset given the totality of the circumstances (e.g., support orders, children in the home).

The Jeffries Offset Formula

Practical Example

Scenario: The Wife (W) remains in the community home for 12 months post-separation. During this time, she pays the mortgage ($2,000/month) with her separate earnings. The home’s Fair Rental Value is determined to be $2,000/month.

• **Wife’s Epstein Claim (Credit for payments):** W paid $24,000 total. She claims 1/2 from the Husband (H): $12,000.
• **Husband’s Watts Claim (Charge for use):** H claims 1/2 of the Fair Rental Value ($24,000 total) from W: $12,000.
• **Jeffries Offset:** The court applies the offset. W’s $12,000 claim is cancelled by H’s $12,000 claim.
• **Apportionment:** The net result is $0. Neither party owes the other, and the claims “wash out,” simplifying the division.