California Property Division in Divorce or Separation
Whether it is a house or a credit card bill, if you are going through a separation or divorce in California you need to divide your property (and debts). If you cannot come to a decision with your ex-spouse, an arbitrator or judge will have to step in to help.
Determining community property in divorce is a very complicated process, especially if one spouse owns a business or other asset to which the other spouse contributed to (funds or labor) during the marriage.
First, it is important to understand California’s community property laws.
The assets and debts that you and your spouse acquire during your marriage belong equally to both of you, and they’ll be divided equally. In general, California uses the date of separation as the date for dividing properties and debt.
For example, if a couple bought a home, but only the husband’s name was on the deed, California divorce laws dictate that the wife is still entitled to some of the value of the house. However, the wife’s student loan payments from a degree she earned before the marriage will not necessarily be the responsibility of the other spouse to help pay off.
Do you need help with child support and custody? Start with our blog What Factors Are Used to Determine Child Support & Custody?
California Divorce Laws for Common Law Couples
Like many states, California does not recognize common law marriage.
The state recognizes palimony (Marvin claim), which means that if a couple lives together for an extended period of time and breaks up, each may have a right to support and/or assets that were acquired during the relationship.
It will be important to:
- Determine whether the property or debt is marital or separate
- Decide on a value for any marital properties
- Decide how to divide the assets/debts
Where to Start with Separation & Debt
There are a number of reasons why dividing property gets challenging:
- California law dictates that what spouses acquire before the divorce but after the date of separation is separate
- You live as a common law couple in a state that recognizes common law and move to California and pursue a separation or divorce
- Many assets can be partially community and partially separate (e.g., retirement accounts one spouse contributed to both before and after the marriage)
A good way to begin is to make a list of everything that you and your ex-spouse own and determine which items are separate and which are community.
You will have to do this to complete your divorce anyways, when you fill out a Schedule of Assets and Debts (Form FL-142PDF file type icon).
Whether you are married or common law, going through an amicable breakup or a tumultuous one, you need the law on your side. Our experienced and skilled California lawyers can help you navigate dividing property and debt. Contact us today.