Pursuing A Fair Distribution Of Marital Assets And Debts In Thousand Oaks
If you are going through a divorce, you may have heard many things from friends and family members about California’s community property system. Because each case is unique, however, it is important to talk to an experienced lawyer about your specific situation.
At the Law Offices of Susan H. Witting, I, Susan H. Witting, a certified family law specialist, have handled these cases since 1983. Providing personalized guidance and diligent representation in community property division matters in Thousand Oaks.
Identifying, Valuing And Dividing Community Property
The first two steps in the community property division process are the identification and valuation of community property. Identification means locating all of the assets owned by either spouse and classifying them as community property or separate property.
- Community property: Generally, assets acquired by either spouse during a marriage — no matter whose name they are in — are considered community property. Exceptions include inheritances, gifts and bequests. Debts acquired during marriage can also be considered community debts.
- Separate property: Assets that are not community property are the separate property of each spouse. If separate assets are sold during the marriage and the proceeds are used to buy other assets, those assets may or may not be considered separate.
Valuation is a very important step in many divorce cases. A bank account may have a fixed dollar value, but a house, business or stock option may be more difficult to accurately value. I am highly experienced at addressing complex asset division and valuation issues.
Once the community property is identified and valued, it is normally divided on a roughly equal basis. There are several factors that can influence this distribution, but in California, nonfinancial issues like infidelity are not relevant to community property division.
FAQs: California Community Property And Debt Division
It is common to begin the divorce process unsure of how California’s community property rules will apply to specific financial circumstances. The questions below address situations that commonly arise and help clarify how the law treats agreements, unequal division and misconduct.
How does a prenuptial agreement affect the division of community property?
A valid prenuptial agreement can alter how community property is divided by identifying specific assets or debts as separate, outlining how future earnings will be treated, or establishing a specific division method. California courts generally enforce these agreements when both parties enter into them voluntarily, with full financial disclosure and the benefit of independent legal counsel.
However, if the agreement is unconscionable or signed under pressure, the court may refuse to enforce it and will apply standard community property rules. An enforceable prenup can streamline the division process by removing disputes about classification and ownership.
Can community property be divided unequally, and under what circumstances?
California law presumes that community property should be divided 50/50, but courts may approve an unequal division in limited situations. This may occur when spouses negotiate a settlement that both believe better reflects their financial needs or long‑term goals.
Courts may also allow an unequal division when one spouse receives an asset that is difficult to divide, such as a business or professional practice. In these circumstances, offsets are used to balance the distribution. In rare cases, economic misconduct that harmed the community estate may justify awarding a larger share to the spouse who suffered the loss, but such exceptions are narrow.
What happens if one spouse tries to hide assets during the divorce process?
Full and accurate financial disclosure throughout the divorce is required, and hiding assets is considered a serious violation. If a spouse conceals income, property or significant assets, the court can impose financial penalties. They may award the entire value of the hidden asset to the other spouse, or reopen the case if the misconduct is discovered later.
Intentional asset concealment may also result in attorney fee awards or additional sanctions designed to compensate the harmed spouse. This reflects the court’s expectation that parties participate in the process honestly and transparently.
Contact A California Marital Property Attorney At 805-409-4138
My office is conveniently located right off the 101 freeway in Thousand Oaks, with plentiful free parking. If you need assistance dividing community property in your divorce, call me at 805-409-4138 or e-mail me to schedule a consultation.
California property division resources: