Divorce inevitably comes with emotional and financial complications, primarily arising from arguments surrounding property sharing. In addition to the emotional turmoil that arises from divorce, most couples are primarily concerned with the division of assets. If you are planning for, or currently engaged in divorce proceedings, you need to know what lies ahead when it comes to the division of assets in divorce. This knowledge will help you set attainable goals and safeguard your rights.
How to Divide Assets in a Divorce
In California, the division of assets in divorce follows the “community property” rule. This means that all assets and debts gathered during a marriage are usually deemed to be community property and thus divided equally. However, it is not always that simple. Factors such as prenuptial agreements, inheritances, and gifts can all complicate the negotiations and final settlement.
California law stipulates that all property owned by both parties must be disclosed before or during the divorce proceedings. The court will examine each person’s fiscal condition to ensure that distribution is impartial. Both individuals must supply an extensive list of the items they own, including real estate, vehicles, retirement funds, and personal belongings. It is best to work with a lawyer when compiling this list and during the discovery process when the assets owned by your spouse must also be revealed.
Different Types of Divorce
Divorces can take different forms and play out in different ways. The division of possessions will depend, to a large extent, on what kind of divorce you are going through. California law provides for several divorce options, such as:
Uncontested Divorce: This happens when both individuals agree on every detail of the divorce, including how assets are split. Such a divorce is usually quicker and costs less money.
Contested Divorce: Quite often, the divorcing spouses do not agree on how assets are to be divided, as well as other matters, such as child custody and support. This kind of divorce often involves court action.
Divorce with High Value: Cases in which one or both of the spouses has a high net worth can either be contested or uncontested. If they are contested, they are particularly complicated, because there are so many assets of high value to disentangle and award to each partner.
Marital Property vs Separate Property
A vital part of the divorce process is differentiating between property that is jointly owned by the couple and property that is owned by each partner separately. According to California law, marital property implies assets and debts gathered during the marriage, while individual or separate property refers to assets acquired before the marriage or via gifts/inheritance during the marriage period.
If one partner already owned a house before the marriage, this home might be deemed a separate asset, depending on various factors. Conversely, if during the marriage period, both partners contributed towards mortgage payments or enhanced the home’s worth via improvements, then the property will likely be deemed a joint asset and will have to be divided between the two of them.
How are Debts Divided in a Divorce?
Separating assets is one thing, but there are other matters to be considered in divorce too – such as debt. In California, debts gathered during marriage are also considered community property, implying that both partners share equal responsibility. On the other hand, some debts may be deemed to be the responsibility of only one of the divorcing partners. It should be noted that a debt may still count as marital debt even if it is only under one spouse’s name, if it was taken on during the marriage. Conversely, debts accrued before the marriage are usually viewed as separate debts, and the partner who accumulated them continues to be accountable for them.
Tips for Managing the Division of Assets
Dividing property during a divorce can feel quite challenging, but there are many tactics you can employ to make the procedure more manageable:
Create a comprehensive list of assets: Put together an exhaustive catalog of all your possessions including real estate properties, bank balances, retirement savings, cars, and significant personal belongings.
Know Your Financial Position: It is essential to know your financial status when discussing how assets and debts will be divided.
Consult with a Financial Expert: Sometimes, seeking advice from a financial advisor or accountant can help with the equitable distribution of assets.
Appoint a Lawyer: A proficient divorce attorney can guide you through the procedure, look out for your interests, and ensure that the division of property adheres to California legal rules.
Call to Action: Contact Westover Law for Expert Guidance
Dividing assets in divorce can be complex, especially when it involves intricate financial circumstances and large portfolios. At Westover Law, we provide high-quality counsel and representation as you navigate the divorce process.
Should you be dealing with the division of assets in divorce in California, particularly Murrieta and its neighboring areas, contact Westover Law for a consultation. Dial 951-894-8440 or complete our digital contact form. We will assist you in understanding the division of assets during a divorce and guide this procedure with assurance.