Understanding Dividing Assets in a California Divorce

Navigating divorce in California may feel overwhelming, especially with California's community property laws. However, understanding the intricacies of property division is important for those dealing with real estate, financial accounts, investments, retirement accounts, personal property and more.

What Can Be Split in a California Divorce?

Generally, courts will allow property division however the parties agree, If the parties cannot agree, then a trial may be necessary to determine how property should be divided.

The following are some of the assets that can be split in a California divorce. This is not a list of every asset but the most common in divorce cases.

• Real Estate: Your home, commercial property, vacation properties, rental properties, timeshares.

• Personal Property: Vehicles, household items, jewelry, art, collections.

• Financial Accounts: Savings accounts, checking accounts, investment accounts, retirement accounts.

• Business Interests: Ownership stakes in businesses. These may be businesses one or both spouses own, operate, or have an investment in.

• Income and Employment Benefits: Bonuses, restricted stock units, stock options, deferred compensation.

• Insurance Policies: Cash value of life insurance or annuities.

• Debts: Credit cards, loans, taxes, etc.

• Other Assets: Intellectual property, royalties, memberships.

What is Community Property in California?

California Family Code 760 defines community property as: "except as otherwise provided by statute, all property, real or personal, wherever situated, acquired by a married person during the marriage while domiciled in this state is community property."

Community property includes all assets acquired by a married couple during their marriage from a marital source. Both spouses equally own these assets, usually despite whose name is on the title or who earned the income during the marriage. There are exceptions to these rules.

What is Separate Property in California?

California Family Code 770 defines separate property as all property owned by one person before marriage, all property acquired by the person after the marriage by gifts, bequests, devise, or decent, as well as the rents, issues, and profits of said property.

How Can You Protect Your Financial Interests During a Divorce?

It is important to protect yourself and your financial interests during a divorce. Here are some things you can do that will help:

1.     Gather and Organize Financial Documents: Create a list of all assets and debts and collect recent financial statements.

2.     Consult with Professionals: Hire an experienced family law attorney, tax professionals, and financial advisors. Complex cases may require other attorneys, such as business, real estate, intellectual property, or employment law attorneys.

3.     Track Spending and Income: Keep a detailed household expenses and income record.

4.     Ensure Proper Valuation of Assets: Obtain professional appraisals for real estate, businesses, and valuable personal property.

5.     Review and Update Legal Documents: Update wills, trusts, and beneficiaries on insurance policies, retirement accounts, and other financial accounts. Seeking legal advice before taking action is important.

6.     Understand Community and Separate Property: Identify separate property and avoid commingling.

Why is Legal Representation Important?

Legal representation improves your chances of a reasonable division of assets and debts, proper valuation, and navigation of court procedures. Attorneys help negotiate settlements, handle complex issues, and prevent future legal problems.

If you are considering a divorce, schedule a consultation by calling 562-600-9989 today. The Law Office of Kyle Gurwell understands what you are going through and our experience and know-how will help you through the process and get the results you desire