How California’s Community Property Laws Impact Your Divorce

California’s community property laws impact how your property will be divided. Marital property is split evenly among divorcing spouses, so what is or isn’t marital property can be hotly contested. The property division Law Office of Taylor B. Warner, APLC represents couples with complex finances and property holdings and ensures the law is applied fairly. We will discuss community property laws and how they work.

The Rancho Cucamonga property division attorney, Taylor B. Warner, will fight for your rights no matter which side of the dispute you’re on. We can put our knowledge and experience to work for you. Call us today at (909) 466-5575 or complete our contact form to schedule an initial consultation so you can get the help you need.

Part of Your Divorce Involves Dividing Your Assets and Debts 

As part of unraveling your marriage, your debts and property will be split. Property is anything with value. You can buy or sell it. This includes vehicles, your house, and even your furniture. It also involves your finances, including bank accounts, pensions, 401k plans, and stocks.  

Most couples negotiate a property division agreement as part of their divorce. This is best done with help from a property division lawyer to protect your rights and interests. The agreement need not strictly follow community property law, but the court must approve it. A judge will issue a related order. If the parties can’t reach an agreement, mediation should be tried, and if that fails, there could be a hearing or a trial on the issue.

Separate and Community Property

Community property is what the two of you own or owe together while married. Separate property is what you own or owe individually. This can involve assets or debts you obtained before and after you separated and gifts or inheritance received during your marriage. It may become community property if it’s mixed with community property.

Community property is what either of you earned, the debt you incurred, and what you bought with your earnings during your marriage and before you separated. The two of you own the property equally. Proceeds from retirement plans or pensions are community property if the money put in the plan was earned during the marriage or a spouse was married while earning credit for the pension.

The debts that could be community property include a mortgage, car loans, and credit card debt. That’s the case even if it’s in one spouse’s name as long as it was incurred during the marriage. If your spouse runs up a lot of debt knowing the marriage is ending, it may be their separate debt you shouldn’t pay for.

Separate property is the following: 

• What you earned, owned, or owed before your marriage or after you separated 
• What you buy with your separate property 
• What you earn from your separate property 
• Gifts or inheritance to you, even if you received or inherited it during the marriage

Your separate property belongs only to you if it was kept separately and not given to your spouse. You owned a car before your marriage, sold it during your marriage, and bought a new one. That would be considered separate property.

Separate? Community? Both? Either?

Property can be a mix of community and separate property when you combine or commingle it. This can happen when you make a big purchase, create retirement plans, or fund bank accounts. An example is buying a house:

• You use savings from before your marriage (separate property) to make a down payment on a house
• The two of you use your incomes to make the mortgage payments, creating equity in the property
• The equity created by your down payment is your separate property
• The equity from the mortgage payments is community property

One way to prevent these issues is to execute a premarital agreement before getting married. This way, future spouses can agree to their property rights if the marriage breaks up.

Contact the Property Division Law Office of Taylor B. Warner, APLC 

Proper property division can be a significant issue in a divorce, especially if substantial, complex finances and property holdings are involved. With our help, you’ll know your rights, and we’ll vigorously defend them during negotiations and litigation.

Law Office of Taylor B. Warner, APLC, property division attorneys represent parties on both sides of division disputes, so don’t hesitate to contact us.  Get immediate legal help, and don’t handle this yourself. Contact us online or call us today at 909-466-5575 to speak to one of our property division lawyers.

Taylor Warner

Taylor has always been an advocate. Growing up the middle child with an older and a younger brother, Taylor developed a strong voice and personality and has always felt strongly about helping others. Becoming a lawyer seemed to fit Taylor’s personality and character – she is a strong leader and a bold advocate. Learn more here.