Your state’s laws may affect the outcome of your divorce settlement, which is why you should understand the difference between equitable distribution and community property. Many states follow the equitable distribution route, which means that the property acquired during your marriage belongs to the spouse who earned it. The court will determine many different factors, such as the earning contributions of each spouse, the value of one spouse staying home to raise the children, and earning potential of each. In California, however, we use the community property method.
Community Property in California
In California, spouses are both deemed to own all income and assets on an equal level. Even if only one of the spouses is employed, this is still assumed. In addition, if you and your spouse buy property with community money, it is deemed to be owned by both of you no matter who purchased it. It also means that both spouses will both be responsible for their debts from credit cards, mortgages, and car loan balances. 25% of the American population lives in a state where community property is considered.
What Stays Separate?
If you live in a community property state, there are some things that will stay separate. This includes all property that was acquired prior to the marriage and property obtained by a spouse after legal separation has occurred. If you or your spouse have received a gift or inheritance during the marriage from a third party, this will also stay separate from community property. In the event of a death, community property becomes extremely important because these laws will determine who receives certain property as well.
As you can see, it is extremely vital to understand community property laws if you live in California. At The Law Offices of Amy M. Montes, we can help you discern what will happen with your property in the event of a divorce. Call us today for more information on how we can help you in your time of need.
