Dividing Property and Debt in a California Divorce
Knowing how assets and debts are treated upon divorce in California may help to alleviate some of the stress and pressure on a divorcing spouse.

January 20, 2012 /24-7PressRelease/ -- Dividing Property and Debt in a California Divorce

Divorce is tough on most couples, and not just for the obvious emotional reasons. Divorce carries with it complicated legal issues, among them property division, spousal support and a host of issues regarding children, if applicable. Knowing how assets and debts are treated, which is the focus of this article, may help to alleviate some of the stress and pressure on a divorcing spouse.

Community Property Division

California is a community property state, meaning all property obtained during the marriage is owned equally by both spouses and all debt is owed equally by both. As a result, during divorce a court will look at splitting assets equally between both spouses.

Even if a debt was entered into by only one spouse, or a credit account received under only one spouse's name, the other spouse is still responsible. This is true even if one spouse may not be aware of debt the other spouse accumulated during the marriage.

It is also possible that a divorcing spouse may not be aware of all the existing community property to which he or she is entitled. For example, if one spouse has a pension plan and money was put into it while he or she was married, the other spouse is entitled to a portion of those funds.

When attempting to divide assets, courts look to the fair market value of the item in determining how much each spouse is entitled to, as neither spouse is entitled to a particular asset. When there are multiple assets valued at different amounts, the aggregate value of all assets awarded to the spouses should be equal.

While community property must be split evenly, separate property is exempt. Separate property includes anything a spouse owned before the marriage, as well as inheritances and gifts, and money made from other separate property, such as money from a rental property owned as separate property.

An Experienced Attorney is Essential

While in community property states the presumption is that all assets will be divided according to the aggregate sum of all property, negotiating the property settlement is still a complicated process that requires the help of a divorce lawyer. An experienced attorney can facilitate obtaining a particular asset one spouse is fond of or deciding what to do with the marital home.

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