Methods to protect your personal assets throughout a divorce
California, being a community property state, considers a married couple to be one legal “community.” All assets and obligations acquired by either spouse during the marriage are considered shared property under the law.
The courts usually divide this common property equally upon a divorce. There are, nevertheless, ways to keep independent assets separate from your marital inheritance.
Prenuptial or postnuptial agreements should be drafted.
A prenuptial agreement that states that you will retain certain assets in the event of a divorce is one approach to protect your holdings in the event of a divorce. A postnuptial agreement might also help you separate your personal property from marital property. These contracts frequently take precedence over the regular division guidelines of the court.
Demonstrate that your property is distinct from the marital estate.
You can protect your assets by demonstrating that they meet California’s legal requirements for distinct property:
- During your marriage, you inherited property.
- You were given property as a present.
- You owned the property before to your marriage.
- You make money from your distinct property.
- You used your separate property to purchase assets.
Keep a separate bank account for your personal possessions.
Separate assets might become community property during a marriage if you pay marital costs with the revenue from the individual property or if both couples deposit money into the account. It is critical that this money remain separate from your joint accounts.
Determine an equitable property division.
If you are unable to demonstrate that your assets are separate property, you may be able to reach an agreement to safeguard your interests. To create an equitable division, you can gift your spouse a separate asset of comparable worth. This approach might be aided by obtaining appraisals or valuations for each asset.
A thorough understanding of California legislation, as well as prompt action, can help you avoid mistakes and protect your personal assets throughout a divorce. Read more about our services concerning division of property here