diff --git a/litellm/proxy/management_endpoints/common_utils.py b/litellm/proxy/management_endpoints/common_utils.py
index c65c344992d..33bfa1f8b44 100644
--- a/litellm/proxy/management_endpoints/common_utils.py
+++ b/litellm/proxy/management_endpoints/common_utils.py
@@ -591,12 +591,22 @@ async def _upsert_budget_and_membership(
         "updated_by": user_api_key_dict.user_id or "",
     }
 
-    if is_shared_default:
-        default_budget_row: Final = await tx.litellm_budgettable.find_unique(where={"budget_id": existing_budget_id})
-        if default_budget_row is not None:
-            default_budget_dict: Final = default_budget_row.model_dump()
+    seed_row_id: Final = (
+        existing_budget_id
+        if is_shared_default
+        else team_default_budget_id
+        if team_default_budget_id is not None
+        and ("temp_budget_increase" in write_data or "temp_budget_expiry" in write_data)
+        else None
+    )
+    if seed_row_id is not None:
+        seed_row: Final = await tx.litellm_budgettable.find_unique(where={"budget_id": seed_row_id})
+        if seed_row is not None:
+            seed_dict: Final = seed_row.model_dump()
             for field in _TEAM_MEMBER_BUDGET_LIMIT_FIELDS:
-                value = default_budget_dict.get(field)
+                value = seed_dict.get(field)
+                if field == "max_budget" and value == 0 and not is_shared_default:
+                    continue
                 if _is_set_budget_value(value):
                     create_data[field] = value