Divorce can be a long and difficult process. One of the most contentious issues in most divorces is the question of how to divide up the shared assets. After all, the resolution of this aspect of your divorce will determine how easily you are able to move forward with your life.
California is a community property state. Unless there is a pre-nuptial agreement, all assets purchased during the marriage are presumed to be community assets and are owned equally by both parties. Of course, this applies to debts as well. Unfortunately, today’s economy has seen many families falling deeper and deeper into debt.
If you are deprived of your fair share of the marital estate, you could be left struggling financially for years to come as you try to rebuild your life. Your divorce cannot be finalized until an agreement has been made and court orders issued concerning who will be responsible for paying the debts that you and your spouse owe.
Community property is assets purchased by either spouse during the course of the marriage. They are legally the shared property of both parties – regardless of whose name is on the title. Anything classified as community property is subject to division.
On the other hand, any property you owned prior to your marriage will be categorized as separate property. However, items of separate property that have increased in value during the course of the marriage may be subject to division of the accrued value. In addition, any property received by one spouse in the form of a gift or inheritance is also considered to be separate property and is not subject to division and sharing.
You might want to take note that the party taking an asset, such as the house, also takes on the house debt or mortgage payments. Any asset that you receive in the settlement that has a debt attached to it is yours to pay.
If you are going through a divorce, contact the Orange County family law offices of Amy M. Montes to assist you with dividing your assets and debts.
