Community Property FAQ: Answers to Common Community Property Questions

April 13, 2020August 10, 2020
by Angie

If you’re like many people, you know California is a community property state – but what does that mean when you’re getting a divorce? Here’s what you need to know.

Community Property FAQ: Answers to Common Community Property Questions

Here you’ll find answers to our most common questions about community property questions, which might help you with your case. If you have more questions, or if you don’t see the answer you need here, feel free to call us at 209-395-1605.

What is an Example of Community Property?

Any property that you and your soon-to-be ex-spouse acquired during your marriage is considered community property in California. Some of the most common examples of community property include:

Vehicles
Wages earned
Home and furnishings
Personal belongings
Cookware
Art
Computers and other electronics

What is the Difference Between Community Property and Joint Tenancy?

Joint tenancy is a type of co-ownership that allows a property owner to keep property in the event that the other property owner dies. Joint tenancy is different from community property – but most married couples hold property as joint tenants with the right of survivorship. The biggest thing to be concerned about? Tax consequences. There might be capital gains issues that you need to know about, so talk to a tax consultant if this applies to your situation.

Can Community Property Become Separate Property?

It’s not uncommon for separate property to become partly community property (such as when one person has a house before the marriage but continues paying on it during the marriage). This is called transmutation. If it went the other way, it would also be called transmutation. The only way community property could become separate property is if there was a mistake in classifying the property to begin with. Separate property includes only the property one spouse obtained before a marriage, after separating, and property received as a gift or inheritance during the marriage.

Related: Hiding assets during divorce

What Are Community Property Debts?

When you acquire assets or debts during your marriage, they’re community property. That means you and your soon-to-be ex-spouse own them equally. Even if only one spouse signed up for the debt, it belongs to both of you. You’re both legally responsible for the debt, but you can negotiate with your spouse over debts during the divorce. If you have marital debt, talk to your Stockton divorce attorney about what to do next.

Can My Husband Take My Car if It’s In My Name?

If you brought a vehicle into your marriage and it was paid for before the wedding, it’s your car – your husband can’t take it. However, if you bought the vehicle (or even continued paying on it) during your marriage, your husband has the same right to the car that you do. Likewise, if he gave you the car as a gift, it’s separate property. You may be able to negotiate with your husband, or you might be able to get the court to issue an order that says you’re entitled to continue using the car during (and possibly after) the divorce. You should talk to your attorney if you’re concerned that your husband will take your car when it’s in your name.

How Much is My Wife Entitled to In Divorce?

In California, which is a community property state, both parties to a divorce are entitled to a fair and equitable distribution of their marital assets. One spouse might also be entitled to spousal maintenance (commonly called alimony), depending on that spouse’s ability to provide for him- or herself. All marital assets – and marital debts – are divisible in divorce. However, if you came into the marriage with property you owned, that remains separate and your wife is not entitled to it in the divorce.

Are Wages Considered Community Property?

Wages are considered community property in a divorce in California, provided that you earned them during your marriage. However, the wages you earned the week – or even the day – before you physically got married are separate property and your spouse isn’t entitled to a fair and equitable distribution of them. It’s worth noting, too, that community income isn’t only about money. It can include real estate, payments you receive for services, or payments you receive in rents, as well as other forms of income.

Related: Bitcoin and divorce

What is Community Property in Real Estate?

In real estate, community property is typically a home or piece of property that a couple purchased during a marriage. This real estate is divisible in a divorce. Sometimes a house or piece of property is separate (meaning that it belongs to just one spouse), such as when that spouse bought and paid for it prior to the marriage. However, everything the couple purchased or acquired during the marriage is community property – including real estate.

Is Cash Considered Community Property?

Cash holdings, such as paper money, savings accounts, checking accounts and investment accounts, are considered community property if the money was acquired during the marriage. For example, if you opened a checking account (even if it was just in your name) during your marriage and put in money that you acquired during the marriage, that money is community property. As community property, it’s divisible during divorce.

How Are Assets Divided in a Community Property State?

In a community property state, assets are divided fairly and equitably. That doesn’t necessarily mean 50-50, though. When it comes to how assets are divided in a community property state like California, each spouse is entitled to a fair share of everything. That means you’re free to negotiate if you’d like. You might trade two antique vehicles for an empty piece of property in the country, for example, or you might agree that your spouse will pay off your joint marital debt while you get to keep the paid-off house. As long as your agreement is fair to both of you, the judge assigned to your case is likely to sign off on it.

Is an Inheritance Considered Community Property in a Divorce?

In California, an inheritance is not considered community property in a divorce unless it was left to you and your spouse. If it was left to only one of you, it belongs solely to that person – it’s separate property.

Do You Need to Talk to a Lawyer About Community Property?

If you still have questions about community property in California, or if you need to talk to an attorney about dividing your property in a divorce, we’re here to help. Call us at 209-395-1605 to let us know what’s going on – we’ll be happy to schedule a consultation where you can talk to an attorney and get the answers you need.

Divorce

Divorce and Cryptocurrency: What You Need to Know

November 22, 2018August 4, 2020
by Angie

Divorce in California can be complicated – and it can be even more complicated when cryptocurrency is involved. Divorce and cryptocurrency are appearing together more frequently in court, so here’s what you need to know.

Divorce and Cryptocurrency: What You Need to Know

When you or your spouse owns cryptocurrency, your divorce requires a different type of financial valuation than other types of divorces do. Cryptocurrency value fluctuates – and it’s not just Bitcoin that surfaces in California divorces any more (though Bitcoin is the most valuable). Dozens of other types of cryptocurrency have cropped up over the past few years, including Ethereum, Dash and ZCash, and the courts have to ensure they’re valued properly to make sure settlements are fair and equitable. Bitcoin divorces – or, more appropriately now, cryptocurrency divorces, are becoming more common.

The Darker Side of Divorce and Cryptocurrency

Unfortunately, because of the nature of cryptocurrency, it’s not incredibly difficult for one spouse to acquire a significant stash of it and never let the other spouse know. It’s incredibly important for both parties to fully disclose their incomes.

If you suspect your spouse has cryptocurrency that he or she isn’t disclosing, it’s a good idea to talk to your Stockton divorce attorney about your concerns. Your attorney will be able to explain your options and work with you to determine how to ensure your spouse isn’t hiding cryptocurrency during your divorce. There are tools available to trace cryptocurrency, and courts are generally used to tackling cases that require tracking assets.

How Courts Value Cryptocurrency in Divorce

Your attorney may suggest that rather than valuing your shared cryptocurrency assets during divorce, you split the cryptocurrency itself. You can divide it fairly, regardless of what it’s worth, and it can simplify the property division process.

The issue is that cryptocurrency’s value fluctuates – sometimes wildly – and that makes it hard to assign it a dollar value. If you have your cryptocurrency valued today and you agree on a dollar amount that needs to change hands, it may not be worth the same amount by the time the judge signs your divorce decree. That can benefit you, or it can hurt you.

Generally speaking, you’ll use two copies of California’s Schedule of Assets and Debts to agree on how much cryptocurrency you have between you. You and your spouse are supposed to trade documents before the property division process begins – it’s sort-of a checks-and-balances system. If you and your spouse agree that everyone’s told the truth about his or her assets and debts, then you can begin dividing your property.

Is Cryptocurrency Separate Property or Community Property?

In a divorce, cryptocurrency can be separate property or community property. Typically:

If you entered the marriage with your own cryptocurrency, the courts will most likely consider it separate property. In many divorce cases, each person is entitled to his or her own separate property without sharing it with the other spouse.
If you acquired the cryptocurrency while you were married – even if one spouse had no idea the other was buying cryptocurrency – it’s usually considered community property. California law requires you to divide most community property equally. An exception may be if you acquired the cryptocurrency as a gift or inheritance that was intended only for you.

There’s no guarantee on how a judge will rule, however, and no attorney can make promises about the outcome of your case. Every case is different, and while these rules on separate and community property may apply in many cases, they may not exactly apply to yours.

Do You Need to Talk to a Lawyer About Divorce and Cryptocurrency?

We can help you if you’re dealing with a divorce and cryptocurrency division. It’s our mission to help you reach a fair and just settlement, so please call us at 209-910-9865 or contact us online to schedule an appointment with an attorney.

While you’re here, you can also learn more about:

Divorce

The Bitcoin Divorce: How Do Courts Divide Cryptocurrency?

February 27, 2018January 17, 2019
by Angie

Bitcoin and other cryptocurrencies are treated like property in a divorce – but how does division of these assets work in California? So far, it’s been a little bit tricky, so here’s what you need to know if your divorce involves Bitcoin or another cryptocurrency.

The Bitcoin Divorce: How Do Courts Divide Cryptocurrency?

When you’re talking to your Stockton divorce attorney about property division, make sure she knows that you have assets in Bitcoin. More separations involve cryptocurrencies than ever before, and in some cases, the values held in those currencies is exceptionally high. Like in any divorce, it’s imperative that both parties fully disclose the extent of their assets; if one doesn’t, the search for the funds can be time-consuming and expensive.

There are tools available to trace Bitcoin, according to Forbes, but many attorneys aren’t familiar with how to use them (or even familiar with the currency itself). However, courts are used to handling cases that require tracing assets – including those that are held offshore, which is a little similar to the types of Bitcoin holdings that are appearing in divorce court today.

Valuing Bitcoin During Divorce

Bitcoin’s value can fluctuate dramatically, which means it’s tough to pin down a dollar figure during divorce. What it’s worth when you file the papers isn’t necessarily the same as what it’s worth when the judge signs your divorce decree, so it’s not as straightforward as traditional investments are. You can’t count on the currency’s worth until the day your judge signs the final papers.

In some cases, it’s best for the partners to skip valuation and divide the Bitcoin itself. That way, it’s a fair split – and it causes fewer logistical problems throughout the divorce.

How is Bitcoin Divided in a Divorce?

Whether you and your ex-spouse choose to divide your Bitcoin assets or you value them and use them in the settlement, the courts treat the currency like it treats other types of property and assets. Each party will list their assets and the values of each on a Schedule of Assets and Debts (Form FL-142), and then exchange copies with the other party. If each party is satisfied that community assets and debts are fully disclosed, the property division phase of divorce can begin.

Community Property vs. Separate Property

If one or both parties to the divorce obtained Bitcoin or another cryptocurrency during the marriage, it’s likely to be considered community property. Under California law, spouses are supposed to divide community property equally.

If one or both parties came into the marriage with his or her own cryptocurrency, it’s likely to be considered separate property. It’s also likely to be considered separate property if one party inherited it or received it as a gift. Usually, separate property belongs to the same spouse throughout the marriage and during the divorce; it’s not typically subject to equal division like community property is.

Do You Need to Talk to a Stockton Divorce Lawyer About Bitcoin in Your Divorce?

We can help you if you’re dealing with a divorce that involves Bitcoin or another cryptocurrency. It’s our mission to help you reach a fair and just settlement, so please call us at 209-910-9865 or contact us online to schedule an appointment with an attorney.

Tag: <span>Bitcoin</span>

Community Property FAQ: Answers to Common Community Property Questions

Community Property FAQ: Answers to Common Community Property Questions

What is an Example of Community Property?

What is the Difference Between Community Property and Joint Tenancy?

Can Community Property Become Separate Property?

What Are Community Property Debts?

Can My Husband Take My Car if It’s In My Name?

How Much is My Wife Entitled to In Divorce?

Are Wages Considered Community Property?

What is Community Property in Real Estate?

Is Cash Considered Community Property?

How Are Assets Divided in a Community Property State?

Is an Inheritance Considered Community Property in a Divorce?

Do You Need to Talk to a Lawyer About Community Property?

Divorce and Cryptocurrency: What You Need to Know

Divorce and Cryptocurrency: What You Need to Know

How Courts Value Cryptocurrency in Divorce

Is Cryptocurrency Separate Property or Community Property?

Do You Need to Talk to a Lawyer About Divorce and Cryptocurrency?

The Bitcoin Divorce: How Do Courts Divide Cryptocurrency?

The Bitcoin Divorce: How Do Courts Divide Cryptocurrency?

Valuing Bitcoin During Divorce

How is Bitcoin Divided in a Divorce?

Community Property vs. Separate Property

Do You Need to Talk to a Stockton Divorce Lawyer About Bitcoin in Your Divorce?