Property Division Lawyers in San Diego

Providing Legal Representation and Advice for Clients Facing a Divorce

Property division is one of the most contested issues in a divorce, especially when a couple has a lot of assets or when the circumstances make it difficult to determine whether a certain set of assets is separate property or not. The attorneys at Khosroabadi & Hill go over how property division is handled during a divorce in California and explain when to seek legal help if you are worried about protecting your interests. If you have any questions about your specific situation, reach out to Khosroabadi & Hill at (858) 434-1020.

Is California a Community Property State?

California is a community property state, meaning that all assets and debts acquired during a marriage are considered to be owned equally by both spouses. In other words, when a couple divorces, the court will divide the assets and debts equally between the two spouses, usually in a 50/50 split. This is usually true regardless of whose name is on the title of the asset or debt.

Community property includes real property, such as vehicles or a house, as well as personal property, such as furniture and jewelry, along with financial assets, such as stocks, savings accounts, and even any debts that are acquired during the marriage. If something is considered to be community property, it may likely be counted as marital property and thus may be divided between the two spouses.

What Is Considered Separate Property in a Divorce in California?

Separate property is anything that belongs solely to either spouse and cannot be counted as community property. When the divorce is concluded, separate property will not be divided and will continue to be owned by the spouse who had ownership of the property before the marriage.

In California, anything that a person earned or owed before they got married or after they initiated their divorce or separation is counted as separate property. In addition, new assets bought with money originating from separate property, as well as anything either spouse received as a gift or inheritance, are also considered separate property. For example, suppose you owned a boat before you got married. After you got married, you decided to sell the boat and use the money to buy a car. Your spouse did not contribute to the purchase in any way, so the car remains your separate property. However, suppose you received an inheritance. The money you received was placed in a joint account and used to buy a house for you and your spouse. Your spouse also contributed money for a down payment. In this case, the house may be considered community property even though you used inheritance money to buy it because the inheritance money was added to a joint account and mixed with your spouse’s funds.

Does Community Property Include Debts?

Something that is also important to consider when addressing property division in a divorce is the fact that debts and liabilities can also be considered community property and may be equally divided between the spouses. The same distinction between community property and separate property applies to debt – separate debt is anything accrued before the marriage or after the date of separation. Any debt accrued in the course of marriage is considered community debt.

In a divorce, community debts may not necessarily be split in half but may be assigned proportionally depending on each spouse’s financial situation. The spouse who is better equipped to handle more debt may end up with a higher share, especially when the overall value of the community debt is higher than the value of the community assets.

Once a debt is assigned to you, you are required to pay it off according to the terms defined by the creditor. It is important to understand that if you become the target of collection activities in connection with a debt assigned to your ex-spouse, you may ask the court for help getting the divorce terms enforced.

What Happens to a Couple’s Home in Case of a Divorce?

A common concern divorcing couples often have is what will happen to the family home after the divorce. There can be a variety of scenarios, depending on whether the house is considered separate or community property. If the house is considered separate property, it will likely remain under the ownership of the spouse who originally purchased it.

If the house is community property, a divorcing couple may make their own agreements concerning what should be done with the house or may have the court decide it for them. Many couples with young children choose to remain joint owners and defer the sale of the home until the children have grown up, making the custodial parent the one with exclusive access to the home. Other times, the court may order the parties to sell the home to a third party and split the proceeds of the sale equally. Alternatively, one of the spouses may keep the home but must pay for the other spouse’s share of the home value. Each case is different, and it may be a good idea to discuss your situation with an attorney to learn the best course of action for your case.

What Is a Financial Disclosure and Is It Really Necessary?

A financial disclosure is a document required for a divorce or separation process. In this document, each party in a divorce or separation shares information with the other party concerning their finances and shows what they own, their earnings, their expenses, and their debts. This document is not filed with the court; it is only an exchange of information between the divorcing spouses. A preliminary disclosure is filed not more than 60 days after filing a petition or filing a response. You may be required to file a final disclosure again before your divorce is finalized unless you and your spouse have signed a waiver saying a final disclosure is not required.

This is a required step to guide decisions concerning child support and property division. The parties are expected to be truthful and honest with each other and fully disclose their debts and assets. If one party willfully fails to disclose information about an asset they own, the court may punish their willful nondisclosure by awarding the hidden asset to the other spouse. In cases where the respondent party did not provide a timely response after being served with divorce papers, the petitioner still needs to provide financial disclosure to the respondent, but the divorce may continue without the respondent’s financial documents.

When Should You Speak to a Divorce Attorney?

If you are going through a divorce or have just made the decision to end your marriage and are not sure what to do next, you may want to reach out to a skilled family law attorney such as the ones at Khosroabadi & Hill. You probably have a lot on your mind, and it is only natural to feel overwhelmed and experience a lot of emotions when thinking about what will happen to your property and your children during and after the divorce.

If you are contemplating getting a divorce, the sooner you reach out to an attorney, the better. Your attorney can help you take the right steps to prepare for your divorce, gather all the necessary documents, and reach out to experts and professionals who can help you obtain an accurate valuation of your property and determine whether it belongs solely to you or to both you and your spouse.

At Khosroabadi & Hill, we understand what you are going through, and we have helped countless other clients in the same situation. We are here to help you get answers to your questions and gain the clarity and confidence you need to move forward and turn the page on this difficult chapter of your life. Contact our law firm in San Diego and request an initial consultation by calling 858-240-2093 to discuss your case and learn how we can help you.