Property Division Lawyer California

Dividing assets during a divorce can be a contentious process. The Law Office of Peter Tuann helps clients navigate property division, ensuring that assets are fairly distributed in accordance with California law. Whether dealing with real estate, retirement accounts, or business interests, we will protect your rights. Call 925 824-3118 for a free consultation with a knowledgeable property division lawyer today.

How California Divides Property in Divorce Cases

Dividing property during a divorce can be one of the most challenging and contentious parts of the process. In California, the way property is divided is determined by state law, which is different from many other states. Understanding the rules that govern property division in a divorce can help you prepare for what to expect and make better decisions during the process.

California is a Community Property State

California follows community property laws, which means that assets and debts acquired during the marriage are generally considered jointly owned by both spouses. This principle applies to both property that is physically in both names and property that one spouse may have acquired in their own name during the marriage. The goal is to split marital assets equally between the spouses, unless there is a valid reason to do otherwise.

What Counts as Community Property?

Community property consists of all assets and income acquired by either spouse during the marriage. This includes:

• Real estate: Homes, rental properties, and vacation homes purchased during the marriage.
• Bank accounts: Savings accounts, checking accounts, and investments that were funded with marital money.
• Retirement accounts: Pensions, 401(k)s, and other retirement savings plans accrued during the marriage.
• Vehicles: Cars, motorcycles, and other vehicles purchased during the marriage.
• Income: Salary, wages, and other earnings acquired during the marriage.
• Personal property: Household items, furniture, and personal items purchased during the marriage.

While community property typically includes assets and income accumulated during the marriage, it does not include property acquired before the marriage or through inheritance or gifts from third parties. These are considered separate property and are not subject to division in a divorce.

What is Separate Property?

Separate property refers to assets that are either:

• Acquired before the marriage: Any property owned by either spouse before getting married remains separate property, regardless of when it is sold or transferred.
• Inheritances and gifts: If a spouse receives property by inheritance or as a gift from someone other than their spouse during the marriage, that property is considered separate.
• Property acquired after separation: Any property acquired after the date of separation typically remains separate property. This includes income earned after the separation.

However, separate property can become community property if it is mixed with community property or if both spouses contribute to its maintenance or value.

How is Property Divided in a Divorce?

In California, property is divided based on the principle of equal division. This means that both spouses should receive a 50% share of the community property. However, the process of dividing property isn’t always straightforward, and there are several factors to consider.

1. Identifying Community vs. Separate Property

The first step in property division is to identify which property is community property and which is separate property. This can be complicated if assets have been mixed, or if one spouse has contributed to the maintenance or enhancement of the other spouse’s separate property. For example, if one spouse owned a home before marriage but both spouses paid for improvements during the marriage, the increase in value may be considered community property.

2. Valuing the Property

Once community property has been identified, it must be valued to determine how to divide it fairly. This process involves appraising assets such as real estate, retirement accounts, and personal property. For some assets, like retirement accounts or real estate, it may require an expert’s valuation to determine the current worth.

3. Negotiating the Division

Once the property is valued, spouses can negotiate how to divide it. In many cases, divorcing couples can agree on an equitable division through mediation or negotiations, rather than going to court. For example, one spouse might agree to take a larger share of the real estate in exchange for relinquishing a portion of the retirement savings.

If the spouses cannot agree on the division of property, the court will intervene. In California, the court will generally divide property 50/50, but this doesn’t always mean that each spouse will receive exactly half of every asset. It may involve offsetting values by awarding one spouse a higher share of one asset and the other spouse a higher share of a different asset.

4. Debts and Obligations

Just as property must be divided, so must any debts or financial obligations accrued during the marriage. California’s community property laws apply to debts as well, meaning that debts accumulated during the marriage are typically shared equally by both spouses. This includes:

• Mortgages
• Credit card balances
• Personal loans
• Student loans (if incurred during the marriage)

While these debts are shared, the division of responsibility can be negotiated, just like assets. If one spouse agrees to take on a higher share of the debt, the other spouse may receive a larger share of the community property to offset it.

Special Considerations 

There are a few important factors that can affect the division of property in a California divorce. These include:

1. The Length of the Marriage

The length of the marriage can influence the division of assets, especially when it comes to retirement savings or pensions. If the marriage lasted for a long time, the court may consider the entire length of the marriage when dividing assets. In shorter marriages, however, one spouse might not be entitled to as large a share of the other spouse’s retirement savings or assets.

2. Contributions to the Marriage

California law takes into account both spouses’ contributions to the marriage, whether they are financial or non-financial. For instance, if one spouse stayed home to raise children while the other worked outside the home, the court may consider the stay-at-home spouse’s contributions when dividing property. In some cases, the court may award a larger share of the property to a spouse who made significant non-financial contributions.

3. Spousal Support

In some cases, spousal support (or alimony) may be awarded to one spouse after a divorce. Spousal support does not directly affect the division of property, but it can have an impact on the financial landscape of both spouses post-divorce. The court may consider the financial circumstances of each spouse when determining spousal support, including the value of the property each spouse receives.

What Happens if Property Division is Not Respected?

Once property division has been finalized in a divorce, it is legally binding. If one spouse does not honor the division or attempts to hide assets, the other spouse can seek legal recourse. This may include filing a motion with the court to enforce the property division or seeking penalties for non-compliance.

Property division in a California divorce is governed by community property laws, which aim to divide assets and debts equally between spouses. The process can be complex, especially when it comes to identifying community vs. separate property, valuing assets, and negotiating a fair division. For couples who cannot reach an agreement on their own, the court will step in and make the final decision.

Protect Your Assets with a Skilled Property Division Attorney

If you are facing a divorce in California, it’s important to understand the rules governing property division and to work with an experienced family law attorney who can help guide you through the process. Having a clear understanding of your rights and responsibilities can help ensure a fair and equitable outcome. The Law Office of Peter Tuann will fight for a fair and equitable distribution of property. Contact us at925 824-3118 for a free consultation with an experienced property division attorney.