Going through a divorce in California is not just about the end of your relationship. A divorce can also have a significant impact on what you own. Understanding how the law handles the division of property can help you reach a fair outcome during this process.
Understanding separate and community property
California is a community property state. Any assets you and your spouse acquire during your marriage are community property. These might include your home, cars and even the portion of your savings you set aside during your marriage. It would also include the debts you acquired after your wedding. Community property is jointly-owned by both spouses, and the court will divide this property in divorce.
However, not everything falls into this category. Separate property is what you or your spouse owned before your marriage, as well as gifts or inheritances received individually during the marriage. Separate property belongs solely to the person who owned it originally, and the court will not divide it during the divorce.
The process of property division
In a divorce, the first step is to identify all the property you and your spouse have. Next, you must determine whether each item is community or separate property. This can sometimes be straightforward. However, it can become complicated, especially if you paid for items with both separate and community money.
Once you have classified your property, the next step is to agree on the value of the community property. Sometimes, couples can agree on this themselves. Other times, they might need help from an appraiser.
Finally, the division process can begin. Ideally, both parties agree on who gets what, and some may even have a prenuptial agreement that provides guidance. If you cannot agree, the court will make the decision. The goal is generally to equally divide the value of a couple’s community property. However, the court may decide that another arrangement would be fairer in some situations.
Understanding the basics of how California courts approach property division in divorce can help you make informed decisions during this process. These choices can help you protect your finances and receive your fair share of your property.