California is one of just nine states in the United States considered a “community property” state. In California, each spouse has equal ownership of community property, which is essentially property that both spouses acquired during the marriage. Community property laws aim to simplify property division and distribution; however, it benefits spouses to rely upon a Riverside property division lawyer to ensure you are fairly represented in court and to understand the complexities of the laws related to property division.
Property Division in California: Community vs. Separate Property
Community property laws are applied during a marriage dissolution to figure out the equitable distribution of property to each spouse. The laws work to grant each spouse his fair share of the marital property. Community property is any and all property acquired by either spouse during the course of the marriage.
- Any and all income acquired by either spouse
- Retirement accounts, 401(k) plans, stocks, and bonds
- Any real and personal property
- Debts incurred by either spouse
Property stops being considered community property when a couple separates. The exact date may be difficult to pinpoint since separation does not always start when one spouse moves out of the marital home.
California laws identify separate property as property obtained before the marriage or after legal separation or divorce. A spouse may also acquire separate property during the marriage as a gift. Our guide to community property and separate property in California covers these distinctions in more depth, including how transmutation can change an asset’s classification.
What Are Examples of Separate Property?
An example of separate property may be a personal savings account in which one spouse has $10,000. If he or she opened the savings account before marriage and kept it until the termination of the marriage and did not use any of the money to benefit the other spouse, it remains his or her separate property.
However, if the spouse took some of the money and moved it into a joint account, the amount he or she transfers into the joint account becomes commingled and may need to be traced to determine its character.
How Is Debt Divided in a California Divorce?
Like the rest of the marital property, debt is divided evenly between the two spouses in a Riverside, CA divorce. Debt acquired during a marriage becomes the responsibility of both spouses upon divorce, usually even if only one spouse signed for it.
Like separate property, debt that a spouse incurs before marriage or after legally separating remains his or her debt. A Riverside property division lawyer will be able to help you understand how much debt you will likely take on after divorce.
Who Keeps the Marital Home in a California Divorce?
The first factor to consider when determining who keeps the marital home is whether or not the couple seeking divorce shares minor children. If minor children are present, the primary custodial parent may petition to keep using the home, even after the divorce is finalized.
The spouse occupying the home will usually be responsible for:
- Paying taxes
- Making mortgage payments
- Paying for property insurance
Sometimes, the spouse occupying the home doesn’t have the income to stay afloat with these payments. In these cases, a plan for what to do with the home will need to be developed.
Spouses who do not have children under 18 may sell the marital home or determine how one spouse may keep the home and ensure the other spouse is compensated for their community interest in the home. The proceeds from the sale will be subjected to California’s property division laws.
Frequently Asked Questions
How is property divided in a California divorce?
California is a community property state. In general, community property is divided equally between spouses, and each spouse keeps their separate property. Equal division does not always mean splitting every asset in half, since a court may assign different assets to each spouse so the overall value is balanced. Our Riverside property division lawyers at Bratton & Razo can help you understand what may be at stake in your case.
What is the difference between community property and separate property?
Community property generally includes income and assets either spouse acquired during the marriage, such as retirement accounts, real estate, and personal property. Separate property is generally what a spouse owned before the marriage, received as a gift, or acquired after separation. Classification can get complicated, particularly when assets have been mixed together, so it helps to review your records with an attorney.
How is debt divided in a California divorce?
Debt taken on during the marriage is generally treated as community debt, even if only one spouse signed for it. It is divided as part of the overall property division, while debt incurred before marriage or after separation generally remains that spouse’s responsibility. A Riverside property division lawyer can help you understand how much debt you may take on.
Who keeps the marital home in a California divorce?
There is no automatic answer. Courts and spouses look at factors such as whether minor children live in the home, which spouse can afford the taxes, mortgage payments, and insurance, and whether the home should be sold or one spouse should buy out the other’s interest. If the home is sold, the proceeds are subject to California’s property division laws. Our attorneys at Bratton & Razo can help you weigh your options in Riverside.
How are retirement accounts divided in a divorce?
The portion of a retirement account earned during the marriage and before separation is generally community property and subject to division. Dividing a plan can involve additional paperwork beyond the divorce judgment, and the rules differ by account type. Our Riverside attorneys can review your accounts and explain what may apply.
What happens when separate and community funds are mixed together?
When separate money is moved into a joint account or used for shared purposes, it may become commingled. The spouse may then need to trace the source of the funds to show what remains separate property, so clear records can matter. Our guide to community property and separate property in California covers this in more detail.
Contact Experienced Riverside Property Division Lawyers
For more information about property division in Riverside, work with the compassionate attorneys of Bratton & Razo. The family law attorneys in Riverside, CA at Bratton & Razo practice 100% Family Law. We have helped families throughout San Bernardino County achieve fairness in these proceedings. Call (951) 684-9000 for a consultation or connect with us through email.