Who Gets What? Property, Asset And Debt Division In California Divorce.
Everyone has heard horror stories of exes engaging in yearslong court battles over easily replaceable property. Thankfully, those types of cases are the exception rather than the norm. Still, dividing marital assets and debts is one of the most complicated aspects of divorce and it can be an emotionally charged process. Thankfully, the right property division attorney can make a significant and positive difference in your case.
In San Francisco and throughout the Bay Area, you can find the help you need at Katherine Shlaudeman Law and Mediation Practice. Since 2007, I have been helping clients find solutions to their family law issues utilizing all available tools and methods. In addition to my work as a litigator, I am highly trained and experienced in divorce mediation and collaborative law. These alternative dispute resolution (ADR) methods are often ideal for dividing assets fairly without conflict or wasting time and money.
An Overview Of Asset Division And Complicating Factors
California is among a minority of states that use the “community property” model of asset division. Put simply, this means that nearly any assets/property acquired by either spouse during the marriage are considered jointly owned and should be divided equally. Assets acquired prior to marriage are typically considered separate property, which means they would not be subject to division.
Unfortunately, property division is much more complex than the explanation above would suggest. The following complicating factors make asset division more complex:
Classifying property correctly: There are numerous exceptions to rules classifying assets as community property (also called marital property) and separate property. An attorney may be able to help you get a specific asset reclassified if it either should or should not be considered part of the marital estate.
Accurate valuation of property: Some assets like, cars will, depreciate in value over time, while others (including the marital residence, 401(k) and retirement accounts) will appreciate. Other complex assets, like a closely held business, typically need to be professionally valued by an appraiser or other financial expert.
Tax implications: In addition to my work in family law, I also have training and considerable experience in tax law matters. I understand that in addition to appraising the current value of an asset, you must also consider how and to what extent it will be taxed. Neither spouse should face an unfair tax burden as the result of the property division process.
Assets that are hard or impossible to divide: The marital residence and a closely held business are two assets that usually cannot be divided unless they are first sold. I often help my clients prioritize their “big ticket” assets by trading away other property equivalent to the value of their spouse’s share.
A prenuptial or postnuptial agreement: Unless it is challenged, the existence of a prenup or postnup is likely to make the property division process easier and more predictable. It also allows the parties to deviate from the rules that normally govern property and debt division.
How Is Debt Divided?
As with assets, debts are categorized as either community or separate. Unlike with assets, however, community debts aren’t always divided equally. If a couple’s debts exceed their assets, a judge may divide debts unequally, giving a greater burden to the spouse who is financially better off. Suffice it to say, debt division is also complicated and requires the help of an experienced lawyer like me.
Contact Me For Knowledgeable Advice And Guidance
Katherine Shlaudeman Law and Mediation Practice serves clients in San Francisco and throughout surrounding areas of California, including Alameda, Santa Clara and San Mateo counties. My services are offered virtually, saving you time and travel expenses. To discuss your legal options with a knowledgeable property division attorney, send me an email or call 415-413-4488.