Property division
When navigating property division in a California divorce, it's essential to understand the concept of "community property."
California law mandates that all assets and debts accumulated during the marriage are to be divided equally between spouses. This includes income, real estate, and investments acquired while married. However, property owned before the marriage, or received as a gift or inheritance, is typically classified as "separate property" and remains with the original owner.
At TCB we are dedicated to guiding you through the intricacies of property division, ensuring that your unique financial situation is carefully evaluated, and working toward a fair and equitable resolution. Whether through negotiation or, if necessary, litigation, our team is committed to protecting your interests and securing the best possible outcome for your future.
Guiding principles in property division
California property division is based on several key principles:
Community vs. Separate Property. Assets and debts acquired during the marriage are considered community property and typically split evenly. Property owned before marriage or received as a gift/inheritance is usually separate and not subject to division.
Valuation Date. Property is valued as of the date of the trial or an agreed-upon date, ensuring accurate assessments.
Equitable Division. While the law calls for equal division, certain factors—such as prenuptial agreements or financial misconduct—can influence the final outcome.
Understanding community and separate property
The distinction between community and separate property is critical in determining what will be divided.
Community property generally includes any earnings, savings, and debts accumulated/incurred during the marriage.
Separate property, however, encompasses anything owned prior to marriage or acquired/earned after separation, as well as gifts and inheritances received individually. In cases where separate and community assets are intertwined, such as a house owned before marriage but paid for with marital funds, the court will determine the proper division of those assets.
There are, of course, exceptions and nuances which may apply to your case. Our dedicated team at TCB will work closely with you analyze how the facts and circumstances of your case work within the governing statutes and case law to obtain the best result.
How property division is decided
While spouses can negotiate their own agreements, unresolved disputes are settled in court. The court considers factors like financial contributions, the nature of the property, and any pre-existing agreements (such as prenuptial contracts). Courts are guided by the principle of fairness, ensuring that both parties receive an equitable share of the marital estate.
Out-of-court agreement vs. litigation
Negotiating a property division agreement outside of court is often the preferred approach, as it can save time, reduce stress, and allow both parties to have a say in the outcome. However, if an agreement cannot be reached, the case will move to litigation, where the court will make decisions on asset division. At TCB, we are experienced in both negotiation and litigation, ensuring your rights are protected every step of the way.