Family Law Basics: Property Characterization and Division at Divorce – The Reape-Rickett Law Firm

Common questions arise in nearly every divorce proceeding: who gets what stuff? Will I get my fair share? Will I get to keep my stuff? The answers to these questions rely on how that property is categorized at the time of your dissolution.

There are two main categories that the courts use to decide how property will be divided: Separate Property and Community Property. California is a community property state, one of only nine states that use the community property system. Assets and debts acquired during the marriage by either or both spouses are presumed community property and are generally subject to equal division at dissolution.

Separate property is any asset or debt that a spouse acquired before the marriage. However, if a spouse receives property during the marriage via a gift or inheritance, the property will be that spouse’s separate property. Additionally, the rents, issues, and profits of one spouse’s separate property remain their separate property. This means that if you own a property that generates rent before your marriage, that property’s rental income will remain your separate property during the marriage. Additionally, if, for example, you have a separate property car, and trade in the car in for cash, those funds would be your separate property. However, the distinction between separate and community property can become challenging if funds are placed into community accounts or community assets are used to improve or maintain separate property.

Another consideration when determining property characterization is the date of separation. The “date of separation” is the day one spouse indicates to the other their intention to end the marriage, though as a practical matter the date is usually determined to be the day the Petition for Dissolution is filed. Assets and debts incurred after the date of separation are generally the incurring spouse’s separate property.

However, there are a variety of property issues that can complicate the divorce process. If you are faced with property division issues, contact The Reape-Rickett Law Firm at (888) 846-6166 or visit DivorceDigest.com to speak with an experienced divorce attorney in Santa Clarita to protect you.

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