Dividing your Property and Debts in Your Divorce

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[Divorce Requirements] [Prepare Your Documents]

INCOME, DEBTS, AND YOUR DATE OF SEPARATION:

In California, the assets owned by the spouses can be community or separate property for the purpose of the divorce. It is important to set aside what assets (or liabilities) are separate assets for each spouse. The divorce court is required to set apart to each spouse's separate property but shall divide the community property and liabilities between the spouses.

Separate Property: Separate property belongs to just one spouse. Separate Property includes:

Debts from before marriage are the separate property of whoever incurred them
Loans for the education and training of a spouse are treated as the separate property of that person
Property that was acquired before the marriage or at any time was given specifically to one spouse by gift or inheritance
Income from non marital assets derived during marriage unless the income was treated, used or relied upon by the parties as a marital asset.
Valid written agreement of the parties to have certain assets excluded from the marital assets.
With a few exceptions, income, accumulations and debts of either spouse that are acquired after the date of separation are their own separate property, whether or not a divorce action has been filed.

Community Property: Community Property assets are defined as all assets acquired by either spouse subsequent to the date of the marriage and not specifically established as separate property of either spouse. Community property belongs to both spouses equally, no matter who actually earned it. Community Property Assets include:

Assets acquired during marriage, individually by either or jointly by them.
Any enhancement in value and appreciation of non marital assets resulting either from the efforts of either party during the marriage or from the contribution to or expenditure thereon of marital funds or other forms of marital assets.
Gifts given between spouses during marriage.
All Funds accrued during the marriage in retirement, pension, profit-sharing, annuity, deferred compensation , and insurance plans and programs, whether or not vested.
All real estate held by the parties as tenants by the entireties, whether or not acquired prior to marriage.
All of the above applies to debts as well as assets

Mixed-Up Property: If you mix separate and community property together you may may have created a situation that is difficult to unravel. In order to sort our community property from separate property, you must be able to trace it - - that is, show very clearly where certain money came from and how it was spent. Often this requires expert evaluation and assistance.

California courts by law are required to distribute community property assets equally between the parties unless there is justification for an unequal distribution.

[Divorce Requirements] [Prepare Your Documents]