Understanding Asset and Debt Division in a Divorce

Per California law and unless you have a valid prenuptial or postnuptial agreement, all property, assets and debts acquired after marriage belong jointly to both spouses. Therefore, if the couple goes through a divorce later on then all such property is considered community property and must be divided equally between the former spouses. Even if one spouse made more income or contributed more to the purchase of property after marriage the courts still view it as community property that would be divided equally. Exceptions would be anything legally considered to be separate property due to a prenup, postnup or gifts or inheritance made specifically to one spouse. Consult with a divorce attorney as soon as possible if you have questions about community property, separate property and division of assets.

The Divorce Property Division Process

All real estate, assets, accounts, pensions, life insurance, business assets and other property must be fully cataloged and appraised during a divorce. All loans, credit card debts, tax debts and any other outstanding debts must also be recorded as these are also equally divided if obtained after marriage. Many people establish a prenuptial or postnuptial agreement in regard to a business, especially if when there are other business partners. This protects the business in the event of a divorce. If there are no such agreements then the business assets and debts may be considered community property. It is often the case that two former spouses are able to come to agreements about “who gets what” through mediation. If the two parties cannot agree on the division of community property or if there are disputes concerning separate property then a judge may have to step in and order liquidation of assets or other actions to ensure a fair division of marital property.

Do you have questions concerning property division?

There is no denying that going through a divorce can be one of the most emotionally stressful experiences in a person’s life. If you have questions about how property, assets and debts are divided in a divorce then we may be able to help. A highly qualified divorce attorney with our firm has helped clients with cases involving community property, division of assets and debts, high net-worth divorces, spousal support, child custody, child support and more. Please contact us at the Law Offices of Frank F. Ali now to schedule a free initial consultation to see how we may be able to help you obtain your legal goals and protect your best interests.