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| As part of a divorce action, usually the court will decide how to divide your property and debts, both real property, like your house, and personal property, like your cars and furniture, and all the outstanding debts. California is known as a "community property” state. What that means is that property acquired and debts incurred during marriage is presumed to be community property and debt. |
| Property Division |
Each spouse owns one-half of all the community property, and it is divided equally or “in kind” at the time of division.
The separate property of each spouse isn't included in the community property division in this State. ''Separate property'' typically includes:
1. Property or businesses owned prior to marriage or living together
2. Gifts and inheritances from family that haven't been "commingled" with community assets (such as in a joint bank account)
3. Pension proceeds of either spouse that vested prior to marriage |
| Taking a Property Inventory |
It's very important that you make a complete list of all property belonging to both you and your spouse. It's vital not to hide assets, because anything left out or omitted could result in re-opening the case and exposing a party to financial sanctions for breaching the “fiduciary duty” between spouses.
Assets which you need to list include:
1. All bank accounts
2. Pension and retirement accounts
3. IRAs
4. Businesses and Corporations
5. Stocks and bonds
6. Certificates of Deposit
7. Money Market Accounts
8. Items from your safety deposit box
9. Household furniture, furnishings and appliances
10. Jewelry, Antiques, Art, Coin collections
11. Vehicles, Boats and Trailers
12. Life Insurance (cash value)
13. Equipment, Machinery, Livestock
14. Retirement, Pension, Profit Sharing Annuities
15. Accounts Receivable, Unsecured Notes, and Tax refunds
When you and your spouse can't agree on the value of a particular piece of property, it may be necessary to have a professional appraiser -- such as a business appraiser or a real estate appraiser put a value on the property for you. You'll want to provide your lawyer with information you have regarding the value of property, including prior appraisals and assessments from tax collectors and so forth. Regarding an appraisal of a business or corporation, it is critical to obtain all information about how the corporation, including how the business is run, the existence of any prior business appraisals, how the books are kept, whether there are personal expenses run through the business, and any other information that may affect the value of the business.
Many divorcing couples make the mistake of fixating on one piece of personal property, such as an art object or something else of sentimental value, and spending many times the value of the object in arguing over who will own it. It's almost always better to compromise between the two of you as to how to divide your personal household possessions, unless your lawyer finds some reason to get involved. |
| Division of Debts |
| It's equally important that you make a complete list of all the outstanding debts belonging to both you and your spouse or to both of you jointly. You need to list both secured and unsecured debts. This is community debt, which means that you are liable for and will be awarded ½ of the debt (or the equivalent) in the distribution of the community estate. |
| Property Settlement Agreements |
If you and your spouse can agree on how to divide your property, your lawyers will write up a formal agreement called a “Marital Settlement Agreement.” Detailed lists of who gets what will be included in this agreement. The issues of child custody and visitation, child support and spousal support, division of community debts and other related issues also are generally included in the agreement.
Read the Marital Settlement Agreement carefully, and ask your lawyer about anything you don't understand. Once you've signed the agreement and it's been approved by the court, it will be extremely difficult and expensive to try and change it. |
| Following Through After the Divorce |
As soon as the Marital Settlement Agreement is approved and the court finalizes the divorce, you'll want to take care of the details of property transfer:
1. Get your ex-spouse's signature on any deeds, stock transfers or bank account forms that will be necessary to transfer property into your name
2. Make any payments necessary to fulfill your end of the property division arrangement
3. Start the process of refinancing property if that is a part of your agreement
4. Make sure you release your name on the title to any property your ex-spouse is receiving
While it may be the last thing you want to do, taking care of these details will save future trouble and make it easier to gain closure on this chapter of your life. |
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| Backes & Associates offers excellent professional services in all aspects of Family Law including Divorce, Legal Separation, Domestic Partnerships, Child Custody and Visitation, Child Support, Spousal Support, Domestic Violence, Restraining Orders, Division of Property, Grandparent Rights, Premarital Agreements, Paternity and Adoptions. |
| Serving San Diego County, including North County, East County, and South County and, specifically including, the following areas: Pacific Beach, La Jolla, Bird Rock, Del Mar, Solana Beach, Cardiff, Encinitas, Rancho Santa Fe, Olivenhaim, La Costa, Carlsbad, Fairbanks Ranch, Oceanside, Vista, San Marcos, Escondido, Fallbrook, Rancho Bernardo, Rancho Peñasquitos, Mira Mesa, Poway, Point Loma, Coronado, Downtown, Miramar, Imperial Beach, Sorrento Valley, Carmel Valley, Temecula, Ramona, Alpine, El Cajon, Spring Valley, Chula Vista, San Ysidro, Julian, Clairemont, Lakeside, Jamul, Golden Hill, North Park, South Park, Hillcrest, Mission Hills,University City, UTC, Ocean Beach, Mission Beach, Scripps Ranch, Bonita, Borrego Springs, Valley Center, Lemon Grove, La Mesa, College Area, Linda Vista, Allied Gardens, San Carlos, Santee, Eastlake, Bonsall, Murrieta, San Clemente, San Juan Capistrano, Laguna Niguel, Mission Viejo, Lake Forest, Aliso Viejo, Dana Point, Orange County and Riverside County. |
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| DISCLAIMER: |
| The information you obtain at this site is not, nor is it intended to be, legal advice. You should consult an attorney for individual advice regarding your own situation. Neither this web site nor its contents create an attorney-client relationship. |
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