Asset Division is a Complex Matter in California, Here’s Why

The State of California is a “no-fault state,” generally with regard to divorce. In layman’s terms, this means that a person can file for divorce without having to allege some wrongdoing on the part of their spouse.  The primary reason for seeking a divorce in California is “irreconcilable differences.” In some circumstances, the permanent legal incapacity of the spouse to make decisions will also provide a basis for dissolution of the marriage (“divorce”). While filing for divorce is fairly simple, several legal aspects can make the matter complex and convoluted. One of these is property division.  Although property division is not typically influenced by the behaviors of the spouses, such as one spouse engaging in extramarital affairs, a spouses’ rights, equity and restitution as to property division as well as support can be severely affected by a spouses conduct in breach of their fiduciary duties to one another.  Furthermore, and despite any wrongdoing of a spouse, dividing the property can be extremely challenging. If you are facing divorce, it is important that you speak to a well-versed family law attorney. With many years of dedicated experience, the attorneys at the Knez Law Group, LLP can advocate on your behalf. 

Community Property Division in the State of California

California is a community property state. This means that the state presumes that the property acquired by the spouses during the marriage is “community” and equally owned by both spouses. Whereas any property acquired prior to the marriage or after separation is presumed to be separate property.  Property includes all real property (land), personal property, tangible property, financial interest and investment, as well as the debts and obligations.  Once the parties decide to divorce, dissolve their domestic partnership, or legally separate, the parties will need to divide the assets to ensure each of them receives their fair share of the community estate. This typically results in an equalization amount to balance out the respective parties rights to the community property, including debts, reimbursements and credits.

Under California Family Code section 760, property and debts belong equally to both spouses when acquired during the marriage. Once a divorce is filed, the parties will be required to identify and disclose any and all assets and debts acquired during the marriage, and ultimately determine appropriate division of the assets and debts, such as:

1. Characterize the assets and debts as being either separate or marital property,
2. Evaluate the community property, and
3. Decide as to how the community property will be divided.

The Complexities of Asset Division in California

Theoretically speaking, adding the value of the community estate and dividing the total value in half sounds like a relatively simple task. In reality, however, there are multitude of legal issues involved, which may complicate the entire process.

Community property is property, assets, and debts acquired by the spouses during the marital union, but they exclude any property acquired as inheritance or a gift. In the state, spouses own an equal share of the community property, which includes, but is not limited to:

• All income earned throughout the marriage,
• Real property, such as rental properties, houses, and land,
• Investment accounts,
• Retirement accounts, and
• Furnishing, antiques, art, cars, and jewelry

Schedule a Complimentary Consultation with a Well-Versed Family Law Attorney Today

The choice to file for divorce can be a difficult decision to make. When a couple decides to file for divorce, the filing process may not be entirely difficult, but there are legal aspects of the divorce that may complicate the process in its entirety. If you are facing a divorce or legal separation, consider obtaining experienced support of the Knez Law Group, LLP. Schedule a complimentary consultation by completing the online contact form here.