Property Division

Divorcing spouses can decide about dividing their property and debts themselves, rather than having a judge decide. However, if a couple cannot agree, they can submit their property dispute to the Court, which will use state law to divide the property. Division of marital property does not necessarily mean a physical division. Rather, the Court awards each spouse a percentage of the total value of the property. It is illegal for either spouse to hide assets in order to shield them from property division. Each spouse gets items whose worth adds up to his or her percentage.

Not all property is part of the marital estate. Determining marital and separate property, determining property value, and determining all of the family assets can be complex. California is a community property state. Generally, this means that all property acquired by a couple during marriage is considered community property and (unless otherwise agreed upon or barring a premarital agreement) the value of the marital estate is divided evenly between the divorcing parties. Also, any debts incurred by either spouse during the marriage are considered community property debts.

On the other hand, property acquired before marriage, during marriage by gift or inheritance, and any income derived from that property is not considered community property. Also, any property acquired as separate property during the marriage is not part of the marital estate. Property purchased with a combination of separate and marital funds is part of marital and part nonmarital property, so long as a spouse is able to show that some separate funds were used.