How to Divide Property in a California Divorce

What You Need to Know About Diving Property in a California Divorce

There are often numerous moving parts when navigating a divorce – spousal support, child custody, child support. One major issue that arises with divorce is the equal division of property. Here’s how to divide property in a California Divorce.

Dividing property during a divorce is often complicated. When a couple gets divorced, the court makes decisions on how to divide property jointly-purchased by the spouses during the marriage. California is a community property state, meaning that 2 individuals become 1 legal “community” when joined in marriage. Thus, property a couple acquired during marriage is considered to be shared community property. Individuals seeking a divorce should speak to a lawyer regarding property and debt separation.

Important Terms to Know When Dividing Property in a California Divorce

Community Property

Under the California Family Code, all property acquired by either party (other than separate property) while married is equally owned by each partner. In California, debt is also considered community property. This means that any debt that either party accrued throughout the marriage is also owned equally by both partners.

Separate Property

Separate property is considered to be any property that was acquired prior to the marriage. Inheritance and gifts acquired during marriage are also considered separate property. Thus, the spouse who received an inheritance or a gift retains sole ownership of it. This may also include rents, profits, or money earned from separate property.

Dividing Property and Debts

Figuring out how to divide property and debts may be daunting. One way to start the process is to create a list of all property – community and separate. Make sure to make separate lists for each type of property and what the fair market value of each item is. This is a step that must be completed later in the divorce process, so it is recommended to get a head start. One may consider the Schedule of Assets and Debts (Form FL-142) when listing property.

The Schedule of Assets and Debts is important throughout the divorce process. It must be exchanged with the other spouse in financial declarations of disclosure. In the form, each party must declare all assets and debts, including both community and separate property. Both parties should be honest in listing the value of each asset. Doing so will ensure the divorce process goes smoothly, as well as prevent possible penalties.

Following both parties’ completion of the Schedule of Assets and Debts, each party should identify potential disagreements or differences in stated community property values. This will help involved parties decide whether an agreement can be reached without court intervention. Both spouses can propose a way to equally divide the property and the community debt. If no agreement is reached, the involved parties will have to go to trial.

Pensions

Pensions are often more valuable than any asset acquired during the marriage. Due to this, it is important to understand that special rules apply to pensions.

If either party has a pension plan, make sure to attach a Pensions Benefits – Attachment to Judgement (Form FL-348) to the divorce judgment paperwork. In some cases, a pension plan may be “joined” as a party in a divorce case in order to have a judge decide on how the pension can be equally divided. More information can be found on the Retirement Plan Joinder – Information Sheet (Form FL-318-INFO). Again, navigating pension plans in a divorce is particularly complicated and often requires the guidance of a lawyer.

FAQs About How to Divide Property in a California Divorce

What is quasi-community property in a California divorce?

Quasi-community property is any property acquired by either or both spouses while living in another state. If the property had been acquired while the couple lived in California, it would have automatically been considered community property. In a California divorce, the quasi-community property will be treated as community property.

What are some other potential outcomes when dividing property in a California divorce?

In California, it is possible that spouses “buyout” the other’s share of property or asset. It is also possible that the spouses sell their assets and equally divide proceeds. In some cases, some couples agree to maintain equal ownership of property following a divorce.

Is it possible to decide property division by ourselves?

While it is possible, dividing property without any legal guidance may be difficult for divorcing spouses. Dividing homes, furniture, bank accounts, debts in perfect halves is often complicated and may be unfair to one or both spouses. If one spouse financially supported the other throughout the marriage, a perfect 50/50 split may seem unjust. In that case, both legal guidance and court intervention may be necessary.

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If you need to divide property in a California divorce, get your free consultation with one of our California Property Division Attorney today!