California’s community property law sets the rules for dividing assets and debts when a married couple separates or divorces. Understanding exactly how these assets and debt are split after a divorce is essential. Knowing these basics will help you avoid surprises and make better choices about your future.
Community Property
Community property is the term for everything spouses earn, buy, or owe while they are married and up until they separate. Wages from your job, a car purchased during marriage, or a house bought together all usually count as community property. Even if only one spouse’s name is on the account or the loan, the law sees most things you both gained, and debts you both took on, during the marriage as shared.
760. Except as otherwise provided by statute, all property, real or personal, wherever situated, acquired by a married person during the marriage while domiciled in this state is community property.
Presumption of Community Property
Courts start with the presumption that anything gained between the wedding and the date of separation is community property. If someone wants to show that a certain asset or debt isn’t community property, it’s their responsibility to provide proof.
Separate Property
Separate property belongs to just one spouse and does not get split up in divorce. Anything you owned before you got married, like money, a car, or a house, stays separate. The same applies to anything received by just one spouse as a gift or an inheritance, at any time, even during the marriage.
Most of the money that someone gets from settling or winning a personal injury case during marriage is also considered their separate property. However, if some of the losses had an impact on the whole household, the other party could also have a limited interest in part of that award.
Dividing property can feel overwhelming. Understanding what counts as community property versus what counts as separate property lets you speak up for yourself as you sort things out.
The Goal is a 50/50 Split
In most divorce cases in California, the goal is to divide everything equally between both spouses. This means that the court usually wants each person to walk away with half of the assets and half of the debts that were built up during the marriage.
To make this work, both people must share a full list of everything they own and everything they owe. Hiding money, leaving out information about accounts, or lying about debts is not allowed. Everyone needs to be honest so the court, and both sides, know everything that needs to be divided.
What Happens to Commingled Property?
When someone mixes their personal property, such as money inherited from a relative or items they owned before getting married, with assets gained while married, this is called “commingling.” In California, these mixed funds or assets can sometimes lose their separate property classification, especially if it’s hard to figure out where the property originally came from. However, dividing it during divorce can be very complicated.
Courts might need specialized accountants to carefully trace the history of the money or assets to find out who owns what. Without clear evidence, assets that started as separate could end up getting split between both spouses.
There are always exceptions to these rules, and they can get complicated. If you’re unsure about your rights during divorce and need help, you don’t have to face it alone. Call our office at (619) 238-0616 – we offer free consultations and will help you get everything you’re entitled to.