Is California a Community Property State?

March 12, 2020August 10, 2020
by Angie

Is California a community property state? Here’s what you need to know if you’re getting divorced in San Joaquin County or elsewhere.

Is California a Community Property State?

California is considered a community property state – but to many people, that doesn’t mean exactly what it sounds like. Under California law, the property a couple acquires during a marriage is community. That means it belongs equally to both parties, and when the couple divorces, they must divide it fairly.

What Counts as Property Under California Law?

Property is anything you can buy or sell, like:

Houses
Vehicles
Furniture
Clothing
Household goods (like dishes, pots and pans, televisions and other items you use around your home)

It’s also anything that has value, even if it’s not something you’d buy or sell, such as:

Bank accounts
Cash
Pension plans
401(k) plans
Stocks
Life insurance that has cash value
Businesses
Patents

When you divorce your spouse, you’re free to come up with an agreement that gives you both your fair share of the property. However, even if you agree, the judge in your case will still have to sign off on it. If the settlement you and your spouse work out is unfair to one of you, the judge can tell you to come back with a different plan.

If you and your spouse can’t agree, you’ll either have to go to mediation or ask the judge to rule. If you ask the judge to rule, you’ll have to provide an accurate valuation of all the property you own – and that can be tricky for assets like businesses. (In that case, you’ll most likely have to hire a professional to value the business.)

Related: What is community property?

Is California a Community Property State When it Comes to Debt?

California law treats debt just like it treats assets. If you accrued the debt while you were married, it most likely belongs to both of you. (There are some rare exceptions, though. For example, if one spouse racked up a bunch of credit card debt because he or she was spending money on a paramour, you can let the judge know – that kind of debt may only belong to the party who created it.)

Related: The California divorce process

What About Separate Property?

As a general rule, the assets and debts you brought into your marriage belong to you alone. The same is true for your spouse.

For example, if your spouse had a paid-off car, furniture and money in a bank account before you married, those assets will most likely still belong to your spouse when you divorce.

Sometimes these things get tricky, though. If your spouse had partially paid off a car when you married and continued to make payments on it after your marriage, it’s neither community property nor separate property. Likewise, if your spouse has a pension or retirement benefit that he or she paid into before and after your marriage, the same is true. In these cases, the property is commingled.

How Do You Divide Community Property?

In California, the property you divide has to be equal. But that doesn’t mean you need to chop your toaster oven in half or sell the house and split the proceeds (although you absolutely can do that if you wish). Instead, the total net value of the assets each spouse receives has to be pretty close to equal. That means it’s okay for one spouse to get the house and the other to get the family business. As long as the assets end up being equivalent in value, you have a fair agreement.

Related: Hiding assets during divorce

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

In the end, what’s most important is that you know California is a community property state and that means you and your spouse have to divide your assets (and debts) equally. You may find that talking to a Stockton divorce attorney can help you sort through the situation you’re in.

Call us at (209) 395-1605 to schedule your consultation today. We can answer your questions about all kinds of divorce issues, ranging from child custody and child support to spousal support and basic divorce information.

Divorce

Hiding Assets During Divorce

November 27, 2019December 6, 2019
by Angie

Hiding assets during divorce is a major problem – and if you’re caught doing so (or if your ex is caught doing so), you’ll face big problems in court. Here’s what you need to know.

Hiding Assets During Divorce

When your marriage is ending, your spouse may decide to hide some of his or her assets so you can’t get them. That’s because property in California falls under specific categories – it can be community property or separate property (and in some cases, it’s a hybrid of both).

If you weren’t active in your family’s finances, or if you aren’t up-to-speed on your spouse’s income, it may be fairly easy for him or her to hide assets during your divorce. Some spouses do this so they don’t have to share – but doing so is more than unethical. It’s illegal.

During a divorce, you must both file forms with the court that truthfully disclose all your assets. That includes bank account balances, real estate and other types of income, such as pay and support from previous relationships. If you fail to do so, or if you lie on the forms, you could be held in contempt of court or be charged with perjury.

Devaluing Assets

Sometimes the value of an asset isn’t obvious without an appraisal, and in cases like those, it’s sometimes easier for a spouse to “devalue” them. That happens when one spouse says something is worth less than it really is in an attempt to share less of its worth with the other spouse. The courts don’t allow this, and in many cases, judges require professional appraisals on things that could be intentionally devalued (like houses, jewelry, businesses and other high-dollar assets). Nobody is allowed to deliberately devalue an asset for the purpose of defrauding the court.

Why Do Some People Hide Assets During Divorce?

Usually, people hide assets during divorce to prevent their spouses from getting a fair share. Unfortunately, it’s not always easy to tell if your spouse is hiding assets. Usually, if you suspect that he or she is doing so, it’s your job to track them down so you get your fair share of the community property.

What Happens if You Hide Assets?

The judge in your case can hold you in contempt of court if you hide assets – or, even worse, charge you with perjury. Perjury is a crime, and it involves deliberately giving false information while under oath. You’re subject to prosecution for perjury if you’re testifying in court or being deposed, or if you signed an affidavit or declaration that contains information you know is false. Perjury is a felony, and it’s punishable by up to 4 years in California State Prison. It’s safe to say that perjury is something you should steer clear of, particularly when it comes to disclosing your assets during divorce. It’s just not worth the risk.

Where to Look for Hidden Assets During Divorce

If you suspect that your spouse is hiding assets, you can do a little detective work of your own. You should start by taking an inventory of your property – especially if you notice that things are disappearing from your home, like jewelry and other high-dollar items. Check for safety deposit box registrations, look in your home safe and see if you can find evidence that your spouse is investing money without your knowledge. Other than that, though, it can be difficult to tell if your spouse is squirrelling away things that belong to you – and you may need to work with a Stockton divorce attorney who has the resources necessary to help discover hidden assets.

Do You Need to Talk to a Lawyer Because Your Spouse May Be Hiding Assets During Divorce?

If you suspect your spouse is – or will in the future – hide assets, it’s important that you get legal guidance. We may be able to help you, so call us today at (209) 546-6870 or get in touch with a Stockton divorce attorney online to schedule a consultation.

Property Division

California Divorce Law: Division of Assets

August 6, 2019March 6, 2020
by Angie

California divorce law and the division of assets can be confusing. Some things are community property and belong to both of you, and some things are separate property and belong to only one of you – and worse, some things are “commingled,” which means part of them belong to both of you together and one of you separately.

Here’s a simpler look at California divorce law and division of assets.

California Divorce Law: Division of Assets

California is a community property state, which means the things that you and your spouse accumulate during the time that you’re married actually belong to both of you. That’s true even if one of you stays home to care for the kids and house and one of you works to earn all the money. If you and your spouse acquired money or belongings during the marriage, you are both entitled to your fair share of them.

But California also recognizes separate property, as well. Separate property refers to money or belongings that one of you had before you got married, or that was given to one of you alone during your marriage (like a gift or inheritance).

Commingled property is property that one of you brought into the marriage – like a house, in many cases – but that you continued to pay for while you were married (which is the time when the things that belong to you are community property). Businesses and other assets can also be considered commingled property.

What Does California Divorce Law Say About Division of Assets for Community Property?

Under California law, you and your spouse have to divide your community properly fairly when you divorce. That doesn’t necessarily mean a 50-50 split (although it can) – it just means that you have to be fair about splitting things up when you divorce.

Sometimes people are able to simplify property division by selling the marital home and splitting the proceeds, or by otherwise reaching agreements to “trade” things between each other. For example, one party may really want the restored sports car in the garage while the other really wants the living room furniture. In cases like these, the judge will typically let couples figure out what they each want to keep during the divorce, and as long as negotiations result in a reasonably fair settlement, the judge will most likely sign off on it.

Related: Community property basics

What California Law Says About Division of Separate Assets

If you brought something into your marriage – say, a car that was completely paid for – you can typically expect to leave your marriage with it. In some cases, you may have to prove to the court that an asset was yours before the marriage; you can talk to your attorney about your situation and she’ll give you guidance.

Things like inheritances and gifts given only to one party are typically separate assets, too, although there are exceptions. For example, if you inherited a large sum of money from your grandmother and it was left specifically to you and not your spouse, there’s a good chance that you don’t have to split it with your spouse when you divorce. However, there are always exceptions – so if you have a situation like this, talk to your attorney so you can get case-specific legal guidance.

What if You And Your Spouse Can’t Agree?

Your attorney will most likely encourage you to reach an agreement on property division with your spouse. There are several good reasons for this – one being that it’s much more cost-effective to agree with your spouse than it is to engage in a time-consuming court battle over your belongings – and it’s nearly always in your best interest to try to negotiate. Often, when people go to court and ask the judge to divide their property after filling out a Schedule of Assets and Debts, both parties walk away feeling as if they lost (even if they get many of the things they wanted). However, when you negotiate a settlement on your own, you’re more likely to walk away feeling reasonably satisfied with the outcome.

Do You Need to Talk to a Stockton Divorce Lawyer About California Divorce Law and Division of Assets?

If you need to talk to an attorney about the way California divorce law addresses division of assets, we can help. Call us right away at (209) 546-6870 or get in touch with a Stockton divorce attorney online to schedule a consultation today.

Tag: <span>Debts</span>

Is California a Community Property State?

Is California a Community Property State?

What Counts as Property Under California Law?

Is California a Community Property State When it Comes to Debt?

What About Separate Property?

How Do You Divide Community Property?

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

Hiding Assets During Divorce

Hiding Assets During Divorce

Devaluing Assets

Why Do Some People Hide Assets During Divorce?

What Happens if You Hide Assets?

Where to Look for Hidden Assets During Divorce

Do You Need to Talk to a Lawyer Because Your Spouse May Be Hiding Assets During Divorce?

California Divorce Law: Division of Assets

California Divorce Law: Division of Assets

What Does California Divorce Law Say About Division of Assets for Community Property?

What California Law Says About Division of Separate Assets

What if You And Your Spouse Can’t Agree?

Do You Need to Talk to a Stockton Divorce Lawyer About California Divorce Law and Division of Assets?