Property and Debt Division Can Be the Hardest Part of a California Divorce: Learn How an Attorney Can Help
Posted on: January 26, 2022
When a couple divorces, each state has its own rules governing how property and debt are handled. California is a community-oriented state. Unless a legitimate prenuptial agreement is in place, this implies that any debt or property acquired during the marriage is equally held by both parties. Continue reading to discover more about how property and debt are split, and then call Law Office of Michael L. Fell for a free legal consultation.
The definition of property
The first step is to comprehend what the courts perceive to be property. “Anything that can be bought and/or sold” is included. The term “property” can also apply to anything with monetary value. All of the following, for example, are categories of property: Homes, boats, automobiles, clothing, furniture, RVs, cash in bank accounts, pensions, businesses, patents, retirement accounts, life insurance with cash value, stocks, land, pensions, and real estate are all examples of tangible assets.
Debts are treated in the same way that property is
Property belongs to both spouses if it was acquired during the marriage and was not given to one spouse as a personal gift. If the debt was acquired during the marriage, it also belongs to both spouses. Even though you have an oral or causal agreement, the judge will hold you both accountable until you have a formal agreement signed by both of you.
How to tell the difference between community and separate property
California is a communal property state, as are numerous other states. This implies that regardless of who is on the title or who earned it, any property acquired during the marriage belongs to both parties. Inheritances or gifts to one spouse are the only exceptions. Debt, no matter how built up, is still collective debt.
Even if your spouse took out a credit card in their name only and you were not engaged in any way, you are responsible for half of the debt. There is one exception: if you can show that your spouse spent the money only to spite you or exact revenge on you. You may not be held liable if the judge labels it “wasteful dissipation of marital assets.”
During the divorce, your separate property will not be divided
During a divorce, separate property stays just that: separate. This includes property possessed by one of the partners before to the marriage, as well as gifts and inheritances. When a person purchases property using their separate property, the bought property stays separate property.
This may be a difficult procedure, but the good news is that you have a skilled family law attorney on your side who can assist you. Request a free case review by calling Law Office of Michael L. Fell at (949) 585-9055 right now.
