“Put It All On The Table”

• Real Estate : Homes, rental properties, and vacation homes purchased during the marriage are generally considered community property.
• Vehicles : Any cars, boats, or recreational vehicles acquired during the marriage are divided equally.
• Retirement Accounts : Pensions, 401(k) accounts, and IRAs accumulated during the marriage are considered community property.
• Investments : Stocks, bonds, and mutual funds bought during the marriage are also divided equally.
• Business Interests : If a business was started or developed during the marriage, it may be considered community property, even if one spouse was primarily involved.

1. Community Property: Community property includes assets and debts acquired during the marriage, regardless of who earned or purchased them. Examples include salaries, real estate, and even debts like credit card balances if accrued during the marriage. Community property is generally divided equally between spouses in a divorce.
   
   
2. Separate Property: Separate property refers to assets and debts acquired before the marriage or after separation. It also includes gifts and inheritances received by one spouse alone. Separate property is not subject to division in a divorce and remains with the original owner.

Just as assets are divided, so are debts. This includes credit card balances, mortgages, and loans acquired during the marriage. Each spouse is responsible for half of the community debt, regardless of who originally incurred it. Separate debts, such as those accumulated before the marriage, or after separation remain with the original debtor , with certain exceptions for .

1. Identify and Classify Assets and Debts: First, each asset and debt is identified and categorized as either community or separate property.
2. Value the Community Property: The next step involves valuing all community property. This step ensures an equal division based on the total value of shared assets and debts.
3. Divide the Property Equally: Once valued, the community property is divided equally between spouses. If it’s impractical to split an asset physically, such as a house, one spouse may receive the asset while the other receives assets of comparable value or a buyout.
4. Negotiate a Settlement or Go to Trial: If both parties agree on the division terms, they can settle without going to court. If there is a dispute, a judge will make the final decision based on California’s community property laws.

1. Prenuptial or Postnuptial Agreements: If there is a prenuptial or postnuptial agreement in place, it may specify how property should be divided, potentially overriding community property rules.
2. Commingling of Assets: When separate and community assets are mixed, such as using separate funds to make mortgage payments on a jointly-owned home, it can complicate the division process. Courts will trace contributions to the payment source to determine what portion is community or separate property.
3. Business Valuation: If one spouse owns a business, it’s essential to conduct a thorough valuation. This ensures a fair division and accounts for the business’s growth during the marriage.
4. Hidden Assets: If one spouse is hiding assets, it can impact the division process. Disclosing all assets is legally required, and failure to do so can result in legal consequences.
5. Tax Consequences: “Immediate and specific” tax consequences to the parties may impact how assets and debts are allocated when all is said and done.