Is Asset Division Simpler In California Because Of Community Property Law?
The concept of community property – that both parties own an equal share of the marital estate – does seem like it would make things simple. However, the truth is that the valuation and division of property can be complex since there are separate property issues that are also considered. Some assets can be a mix of community property and separate property.
At the Law Offices of David K. Yamamoto, we are lawyers with over 40 years of combined experience in family law and property division issues. We guide our clients in Torrance and surrounding communities through all their questions and confusions around the division of property in California and advocate for the outcomes they deserve.
What Do We Mean By ‘Asset Value’?
A common concern amongst people considering divorce is what will happen to specific assets. This asset-centered approach may focus on:
- A vehicle
- A small closely-held business
- The marital residence or another piece of real estate
- Retirement accounts
- Family heirloom or personal items of sentimental value
- A small closely-held business
- The marital residence
- Investments
- Real estate investments
- Private equity
- Intellectual property
- Copyrights Patents
- Stock options and other employment benefits
- Collectibles and antiques
Tangible and intangible assets can be challenging. However, assets can be assigned a dollar value and that value can be accounted for in the exchange of assets. Sometimes, this might mean liquidating assets, such as selling a home or a business and dividing the proceeds. In other cases, it might be worked out through trade-offs of other assets or concessions involving alimony or debt allocation.
Additionally, many of the assets people feel the strongest about may, in fact, be considered separate property under the law, such as gifts or inheritances, or simply possessions that predated the marriage. Thus, allocating assets between spouses is not always straightforward or a simple divide-by-two equation, but our attorneys are well-versed in strategies to balance it out in a fair and practical manner. We regularly represent high net worth clients in the South Bay and Los Angeles County area who have substantial estates and complex assets.
Frequently Asked Questions About Property Division In California Divorces
We have helped many individuals in California make sense of their financial picture during divorce. Below are answers to some of the most common questions clients ask when navigating this part of divorce in California’s South Bay communities.
How is property divided in a California divorce?
California is a community property state. That means most property and debts acquired during the marriage are considered equally owned by both spouses, no matter whose name is on the title or account. During divorce, the court generally aims for a 50/50 division of all community property, unless there is an agreement that says otherwise.
Who gets the house in a divorce in California?
The family home is often the most contested asset. If it is community property (if purchased during marriage), both spouses typically have equal rights to it. The house may be sold and the proceeds split, or one spouse may “buy out” the other’s share. If separate funds were used for the down payment or mortgage, this may complicate the division, and the court will look at those details carefully.
When does separate property become community property in California?
Separate property includes anything owned before the marriage or received as a gift or inheritance. However, separate property can become community property through commingling (mixing assets, like using joint funds to pay for a separate property) or transmutation (formally changing the nature of the asset, such as putting a spouse’s name on a deed). These actions often require a clear written intent and voluntary and informed consent to hold up in court.
How does the date of separation affect property division in California?
The date of separation marks when earnings, accumulations and debts may stop being community property. From that day forward, income or debts are typically considered separate. This date can impact how property is divided, especially if one spouse made large purchases or changes after separation.
How are debts divided in a divorce in California?
Debts, like assets, are usually split equally if they were incurred during the marriage. This includes credit cards, loans and tax obligations. However, if a debt benefited only one spouse (for example, a personal shopping spree), the court might assign it differently. Debts from before marriage generally remain separate.
Your Goals Are Our Guide
Because there is a great deal of fluidity in how a community and separate property discussion may go, understanding what you want is important to us. We will speak to you about your case to get to know what matters most to you. Once we understand your goals in your asset division case, we will begin to discuss the law and strategies to advocate for you.
As your attorneys, we will prioritize an equitable solution. We’ve seen that this leads to greater satisfaction for our clients in the long term. Your property division discussions do not have to be acrimonious. You have options. Call our office at 310-905-6463 today to find out how we can get to work for you. You can also send us an email.