If you are planning on getting a divorce in Sacramento, you will need to have at least a basic understanding of how California’s property division laws work. Community property may be divided with your ex-spouse, but separate property is and will remain yours alone. This distinction can play a very important role in the division of your property.
What Are California’s Property Division Laws?
California is one of only nine community property states in the country. A community property law means that when a couple applies for a divorce or dissolution of marriage, all shared or marital property (property that is considered to be part of the “community”) will be divided in half.
Each spouse will receive an equal share of community property (50/50). Before a judge will intervene and order a 50 percent split, however, the couple will have the opportunity to create their own property arrangement. A judge has to approve the couple’s plan.
Separate Property vs. Community Property
Understanding the definition of separate vs. community property in California can help you and your spouse know how the courts will most likely divide your assets, belongings and debts in the event that your case goes to trial.
Separate Property
Separate property refers to assets that each spouse owned individually prior to the date of the marriage. It also refers to debts that the individual already owed, such as existing student loan or credit card debt.
If the couple separated leading up to the divorce, any assets and debts accumulated after the official date of separation is also separate property. Finally, any gifts or inheritances given directly to one spouse during the marriage is classified as separate property.
Separate property will not be touched by the courts during a legal separation or divorce case in California. It is protected from the state’s property division laws. These assets and debts will remain yours alone and will not be shared with your ex-spouse after the divorce.
Community Property
Community property describes what you and your spouse acquired together during the course of your marriage. Any income you earned, property you purchased, assets you acquired or debts you accumulated after you married and before you separated will generally be classified as community property.
In the eyes of the courts, community property belongs to both of you – both members of the “community” that was formed with the marriage. Therefore, if the courts get involved in a divorce case, all community property (and debts) will be divided equally between both parties.
How to Change Community Property Into Separate Property
The best way to protect your separate property is by keeping it separate. This means not commingling it with your community property, such as by creating a joint bank account. Keep a detailed record or inventory of the items you own, as well as detailed financial records.
If both you and your spouse agree that something you own or acquired during your marriage should be classified as separate property for divorce purposes, you can have this asset transmuted. The same is true if separate assets need to be converted into community property.
If you are not sure how to tell the difference between separate property and community property, contact Boyd Law today. Law. We will review your circumstances to help you properly classify your property. We specialize in complex property division cases.
