Divorce is one of the most difficult experiences a person can go through. Separating your life from another’s after being together for even a short period of time can be extremely painful, especially when it comes to the property you’ve worked so hard to obtain. Understanding California property division law can be complicated, but knowing your rights and ensuring they are protected can help alleviate some of your concerns regarding your property.
Whether you call the booming metropolis of Los Angeles home or live a quieter life tucked away in Orange County, understanding property division is crucial. Maybe you have a vacation home in Modesto or own various businesses in Santa Clarita. Whatever your assets might include, protecting them is key in a divorce.
Quinn & Dworakowski, LLP: Here to Protect What Belongs to You
With over 100 years of experience in family law matters, Quinn & Dworakowski, LLP, is here to protect your rights to property in a divorce. Ranked one of the finest family law firms in Southern California, we understand the intricacies at play in these cases and want to do whatever is in our power to ensure your rights to property are protected and upheld. When you hire a property division lawyer from our firm, we can be there for you every step of the way.
Dividing Property in a California Divorce
California is no stranger to divorce. In 2022, the divorce rate was around 5.9 per 1,000 residents. The decision to seek a divorce is not one that couples come to easily, but when it is necessary, there are various topics that will need to be addressed.
Amongst issues like child support, child custody, and spousal support, the topic of property division can be one of the most contentious, and many folks are concerned over how certain property will be split.
California follows the laws of community property, which aim — but do not always succeed — to seek as even a split as possible between the divorcing couple. Nearly any asset or liability that has been acquired during the marriage is considered to be owned jointly by the couple and is therefore subject to a division. This can include items that were purchased by one partner, such as a car, a piece of furniture, and even something as small as a coffee mug.
The bottom line is: If it was purchased during your marriage, it is community property.
Separate property, on the other hand, is anything that was acquired before the marriage or after the couple has separated. Separate property is typically safe from division unless it is something that gained value during the course of your marriage, like a business interest.
Some examples of community property, or property subject to a division, include:
- The family home or other pieces of real estate
- Bank accounts, including savings and checking accounts, and cash
- Furniture and other household goods
- Any 401(k) or pensions
- Stocks or business interests
- Jewelry or art pieces
- Vehicles
Separate property, on the other hand, includes anything that was owned by one party before the marriage took place or after the separation has occurred, or any kind of gift or inheritance that was given to one spouse, even if they received it during the marriage.
Common Mistakes to Avoid in a Property Division
There’s simply no way around it: Dividing property in a California divorce can be messy and complicated, and it is all too easy to make mistakes. One of the easiest ways to avoid making these mistakes and ensure that the process of dividing property runs smoothly is by establishing a prenuptial or postnuptial agreement when you are first married. Around 45% of couples marrying in California have these agreements established.
However, even with a marital agreement in place, there are several common mistakes that you will want to avoid making while trying to correctly divide property in a California divorce. With an attorney on your side, you can avoid mistakes like:
- Hiding assets. One of the most common mistakes in divorce property division is when one spouse tries to hide assets from the other. This can include hiding or understating the value of certain assets, leaving out or providing false information regarding liabilities, expenses, or income, or misrepresenting the value of something to gain an upper hand in securing it. This mistake is made in nearly 40% of relationships.
- Disregarding tax implications. Usually, there are no immediate tax implications that will come into effect when ownership is transferred from one spouse to the other. However, if the person later decides to sell that property, then they may have to pay taxes on any value that has been added. For this reason, it is wiser to sell certain assets and split the proceeds at the time of the divorce.
- Not having assets appraised. When a divorce occurs, the assets owned by the couple need to be assigned a value for what they would sell for, given the market at the time of their divorce. It is vital, therefore, that the couple ensures their assets are appraised by a professional, as this will help make sure that an accurate and fair property division takes place.
- Disregarding separate property. It is important that you and your spouse understand the differences between community and separate property. This will help ensure that separate property is not included in the total value of the shared estate.
- Overlooking commingled property. If any property was obtained prior to the marriage by one spouse and then becomes mixed with items considered community property, the other spouse may be entitled to reimbursement. For example, if money from a pre-marital account is used to improve the home or for car repairs, the individual who owns the separate account could seek to be reimbursed for the repairs.
- Ignoring court orders. If you do not agree with how the court handles your property division or plan to file an official appeal, you may face certain legal and financial consequences for disregarding or ignoring a court order. If you fail to transfer property ownership, try to hide assets, or violate protective orders, you can be held in contempt of court, face fines or asset seizure, or have your wages garnished.
FAQs
How Can I Protect My Investments in a California Divorce?
There are several strategies you can implement to help minimize your tax liability and any potential financial loss. These strategies include freezing any investment accounts to prevent unauthorized trades or withdrawals, negotiating asset trades between spouses, or understanding how the tax treatment of pre-tax versus post-tax accounts can influence property division negotiations.
Who Gets to Keep the House in California?
If a couple owns a home together and is seeking a divorce, it is considered to be a piece of community property, and it is important that it be divided between the parties. However, if the home was purchased before the marriage, or was given to one spouse as a gift or an inheritance, it can be considered separate property and not be subject to division.
What Assets Cannot Be Split in a Divorce in California?
In California, the assets that are typically protected from a split in a divorce are known as items of separate property. This usually will include all property that was owned by one party prior to the marriage, after the separation, or was given to them through an inheritance or a gift.
How Long Does Property Division Take?
There is no exact timeline for how long the division of property step can take in a California divorce. Several factors can influence this timeline, however, including the willingness of both parties to cooperate with one another and whether the issues contested can be resolved through amicable negotiations or will require court litigation.
Hire a Property Division Lawyer From Quinn & Dworakowski, LLP, Today
If you are facing a divorce and property division in California, you need an experienced lawyer on your side who can ensure your rights to property are protected. When you are concerned about the division of your property, you need a reliable property division attorney who can review your situation and help determine what a fair division looks like. Contact the team at Quinn & Dworakowski, LLP, today when facing a property division case in California.
