Division of Property

California is a “community property” state. In a divorce, if the spouses are unable to reach an agreement, the community assets and debts are divided equally.

In a divorce, there are three basic steps that are used to divide property.

Characterization

First, each piece of property is characterized. This means that the property must be determined to be community property, separate property, or quasi-community property. Determining the character of each asset can be tricky, and requires the advice of a West Covina family attorney.

“Community property” is all property and debt that a married couple acquired from the date of marriage until the marital cut-off date. Community property is divided equally between the spouses.

Separate property includes property owned by a spouse before the marriage, gifts to a spouse during the marriage, and property inherited by a spouse during the marriage. Assuming separate property is not converted into community property, each spouse may keep his or her separate property after the divorce.

Quasi-community property is real or personal property, wherever situated, which would have been community property had the owner spouse lived in California at the time of acquisition. Thus, property that may be considered separate property may be considered community property after the spouses move to California.

Valuation

After the property is characterized, it must be valued. Value may be based on the parties’ agreement, fair market value, purchase value, replacement value, or sentimental value. A West Covina family attorney can help you determine the best way to value your marital assets and arrange for appraisals.

Division

After the property has been characterized and valued, separate property is given to the rightful owner and community property is evenly divided between the spouses.

Fungible assets, such as cash and stock, are usually divided in-kind, with each spouse receiving one half. Other assets, such as the family home, may be sold, with the spouses each receiving one half of the proceeds. In addition, one spouse may receive a particular asset, with the other spouse receiving an asset of equal value. Alternatively, the sale of an asset may be deferred until a certain time, with each spouse maintaining an interest in the asset.

Your West Covina family lawyer can help you reach an agreement with your spouse regarding property division or can argue on your behalf that you should receive particular assets.

Note that honest disclosure regarding assets is important. If assets are hidden or misappropriated, a judge may award the defrauded party any amount determined to be hidden or stolen.

Contact Us

When families are involved, clients need prompt, attentive service. West Covina family attorney Daniel V. Cota is committed to standing by his clients through every step of the process. Mr. Cota is honest and “up front” with his clients – and clients appreciate his knowledgeable and straightforward approach.

For a free consultation, call (800) 351-6850 today.