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Dividing assets during a divorce can feel overwhelming and unfair. Whether it's the home you’ve shared or significant financial assets, the process often leaves people uncertain and anxious about their future.
Divorce shouldn't mean losing everything you've worked for. We fight aggressively to ensure what's yours stays in your hands.
At Family Law Matters, we understand how critical it is to secure a fair division of property while ensuring that your rights are fully protected. Our experienced attorneys help you navigate the complexities of California’s community property laws to ensure that what’s yours stays yours.
If you and your spouse can’t agree, we’ll be there to advocate for your best interests—whether in negotiations or in court. Our priority is to protect your financial future and deliver peace of mind during this stressful time.
Let’s begin by defining the table’s contents. In general, “property” refers to anything that can be bought or sold, including real estate (both residential and commercial), automobiles, furniture, clothing, and technology, among other things. Moreover, property can relate to anything of monetary value, such as bank accounts, investment assets, patents, and even security deposits on rental property.
All property owned by you and your spouse during a divorce will be designated as either communal or separate property (or in rare cases, a commingling of the two). When the divorce is finalized, this procedure of labeling will determine how the property is distributed.
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If you’re in need of caring, compassionate help with your divorce or family law case in Temecula, CA, we’re here for you. Contact us to start the conversation.
California is a community property state, meaning that when a couple marries or registers a domestic partnership, they create a legal "community." Any property or debt acquired by either partner during the marriage is considered community property, belonging equally to both. Under California Family Code Section 760, this includes all real and personal property obtained during the marriage. Upon divorce, community property is generally split 50/50.
Separate property includes assets owned by one spouse before marriage, as well as gifts and inheritances received during the marriage. Additionally, property purchased with separate funds after the marriage remains separate property. Income from separate property, such as rent or profits from a business, also remains separate as long as it is not mixed with community assets.
Quasi-community property refers to assets acquired by either spouse outside of California that would be considered community property if they had been obtained within the state. These assets are treated as community property during a divorce.
To avoid the default rules of community property division, couples can enter into prenuptial or postnuptial agreements. These agreements allow couples to determine how their property will be divided in the event of divorce, which can be especially important for protecting significant assets or business interests.
Unless a gift or inheritance was given jointly to both parties, it will be awarded as the sole and separate asset of the person who received it. This is because gifts and inheritance are not earned through time, effort or skill, and are, therefore, not community property.
Money received from an Indian Reservation for being the member of a particular tribe is the sole and separate asset of the person who received it. Anything purchased with that money is the sole and separate asset of that person. This is because the money is not earned using time, effort or skill. It is earned as a result of one’s heritage.
Like assets, almost all debts acquired during the marriage are community and are divided equally.
When a married person accumulates an interest in a pension, retirement, profit sharing, or other employee benefit plan during the marriage, the part accumulated during the marriage is community property. In California, the retirement or pension plan is then divided using a court order called a Qualified Domestic Relations Order (QDRO). A QDRO is a set of instructions that helps determine how much money is to be paid to each party.
There are separate rules for military retirement. Federal law does not recognize a spouse’s right to receive military retirement unless the parties were married for ten years or more.
Where minor children are involved, the primary parent may be allowed to remain in the marital home. This can be done by delaying the sale of the home or structuring a property settlement to award the house to the primary parent.
One common settlement term is to allow both spouses to remain on title until the youngest child graduates from high school. Later, the house can be sold and the profits split equally.
Separate property is anything acquired by a spouse before the marriage, during the marriage by gift, devise, or bequest, and after the parties separate. It is awarded to the spouse who owns it.
Debts incurred during the marriage are usually equally divided. They are divided to the person who incurred them. Debts accumulated after the date of separation are awarded to the party who incurred them.
Similarly, after separation of the parties, the earnings and accumulations of each party are the separate property of the party who earned the asset.
While most debts accumulated during the marriage are the joint obligation of both spouses, student loans are the exception. They are the separate obligation of the person who incurred them.
Unless the spouses co-signed for the debt, a student loan will be the obligation of only one party.
Disclaimer: The above rules are merely generalities and should not be construed as legal advice and should not be acted upon or relied upon in any way. If you have specific questions about any of the above, please call our office for more information.
Property division during divorce is rarely straightforward, especially when separate and community property have become intertwined.
For example, if one spouse used separate funds for a down payment on a home, but mortgage payments were made with community funds, the equity in the home may be a mix of separate and community property.
In these cases, forensic accountants are often necessary to trace transactions and divide assets accordingly. Consider the following questions when determining property division:
Oftentimes, your attorney will be able to help negotiate a fair settlement that includes remaining in the home.
This could be by coming up with a creative solution in the divorce settlement, negotiating a delay in the sale date of the home, or helping the client find money in the divorce to buy the other party out.
If you are going through a divorce and are interested in saving the family home, we will work together with you to help you achieve this goal. For more information, please call our office or email us. We are here to help.
27307 Via Industria, K-1
Temecula, CA 92590
