Your Experienced Advocate Throughout The San Diego Division Of Assets Process

Divorcing spouses must decide how to divide their marital property and debts. Some couples are able to settle such an agreement on their own or in mediation, but others may have to proceed to litigation.

In any case, there are three crucial steps to the property division process:

1. Determining whether the property (or debt) is community or separate.
2. Agreeing on a value for community property.
3. Deciding how exactly to divide the property.

Note that under California’s community property laws, assets and debts spouses acquire during marriage belong equally to both of them, so they must be divided 50/50 in a divorce and are considered community property (Cal. Fam. Code § 2581). Property that one spouse owned alone, before the marriage or acquired by gift or inheritance during the marriage, though, is considered that spouse’s separate property. Separate property also generally includes earnings on separate property and any increase in the value of separate property. Separate property belongs exclusively to the spouse who owns it and is not typically divided in a divorce.

In certain situations, separate property might become community property if they combine – or “commingle” – separate property with marital property. For example, a house owned by one spouse can become marital property if both spouses pay the mortgage and other expenses. Distinguishing community property from separate property can become complicated, especially if one spouse owns an asset to which the other contributed labor or funds while married. It is best to consult an experienced property division lawyer for legal advice about how to proceed under California’s community property laws.

Complex Financial Asset Division

Our firm has particularly extensive experience in handling high asset property division. One important step to the property division process is assigning a monetary value to each item of property to be divided. These appraisals can help a couple determine the value of real property as well as items like antiques or artwork. When it comes to complex financial estates, you will need a detailed and analytical attorney to ensure the division is fair and equitable.

Understanding Your Division Options

Once spouses decide on the assigned values for their property, they can determine how they wish to specifically divide the property. For instance, one spouse might allow the other to “buy out” their share of an asset or sell the assets and divide the proceeds. They can also agree to hold property together after the divorce, though this will work best with spouses who are cooperative.

One example of this might be if the parents decide to keep a family home until their children are out of school. Others may do so to hold onto investment property that they hope will increase in value. Spouses must also assign all debts accrued during their marriage, such as mortgages, car loans, and credit card debts, to one of the spouses. Be aware that a separation agreement or divorce order is not binding on creditors, so they may continue trying to collect a debt from either spouse.

Frequently Asked Questions About Division Of Assets In California

Here are some questions you may have for our attorneys:

What is the difference between community property and separate property in California?

During a divorce, it is crucial to distinguish community property from separate property. Community property includes assets that are acquired during the length of a marriage. For example, a house or car bought during a marriage is typically considered community property. Community property is divided equally in a divorce.

Separate property generally includes any assets owned before marriage. These assets are typically not divided in a divorce. For example, a car bought before marriage would usually not be community property.

There are a few exceptions to the usual community and separate property rules. For example, a business created before marriage could be separate property. Still, capital gained via that business during a marriage could still be community property. Inheritance and gifts are typically considered separate property even if they were acquired during the marriage – unless they are commingled with marital funds, at which point they become community property.

In a divorce, how does “commingling” affect the classification of property?

Commingling means mixing one spouse’s separate property with the couple’s community property, thereby ending the distinction. For example, a personal savings account opened prior to marriage could become community property if a spouse’s name is added to the account as a co-owner later.

Can a prenuptial agreement change the division of assets in a California divorce?

Yes. Prenuptial and postnuptial agreements can set the terms of asset division in a California divorce. These legal documents can outline what assets each spouse can expect to keep in a divorce. This is one way to help ensure spouses keep their separate property during the asset division process. These documents may also outline the division of assets acquired during the marriage and can greatly minimize disputes.

What steps should I take to protect my separate property during a divorce?

Having strong supporting evidence that clearly distinguishes separate property, documenting transactions and locating prenuptial or postnuptial agreements are a few ways to protect separate property during a divorce.

Contact Us Today To Learn More

If you have further questions about asset division in San Diego, contact Leigh K. Galyon, APC for legal guidance. We can help ensure that property is divided in your best interests, especially in high net worth cases. Call 619-573-6125 or reach out to our firm online today.