There are typically three different issues that divorcing couples may need to address when they divorce. In some cases, one spouse may pay support to the other because of uneven earning potential or shared children. Spouses who share minor children may also need to address the division of their parental rights and responsibilities.
Even in cases where neither financial support nor child custody matters arise, spouses typically have to address property division issues. For some couples, property division is a very simple process. The existence of a prenuptial or postnuptial agreement allows the spouses to proceed with a low-conflict, uncontested division of their marital property and debts.
In most other cases, spouses preparing for divorce have to settle asset division matters as they prepare for court. What do spouses generally need to know about property division in California?
Community property is the law of the land
Every state has a different approach to asset division during divorce. Unlike many states, California does not currently utilize an equitable distribution standard. Instead, there is a community property statute that applies.
Spouses generally have to treat any assets and debts accumulated during marriage as community property. They both have an equal interest in shared property, regardless of who earned more and whose name is on the ownership paperwork of those assets. Spouses typically also share responsibility for debts assumed during the marital relationship.
Litigation isn’t always necessary
People often feel anxious about community property proceedings. They expect a judge to force them to divide everything they own exactly in half, which is typical under community property rules. However, most couples require more detailed and carefully-considered property division arrangements.
Thankfully, divorcing couples have the option of cooperating. Uncontested divorce proceedings allow people to set their own terms for allocating shared assets and financial obligations. If spouses reach their own settlement, they can choose how to handle their unique assets and reach more nuanced terms that reflect the reality of the marital relationship rather than basic state statutes.
Securing a fair property division outcome during a divorce requires an understanding of the law and of the marital estate. Most people need help establishing appropriate goals before divorce and strategizing to achieve them during negotiations or litigation, and that’s okay.