Skillful Assistance With Asset And Debt Division
Understanding Community Property Versus Separate Property
California is a community property state. This means that anything acquired during the course of the marriage is considered community property and shared between the couple. This includes anything purchased with community earnings, or income earned during the marriage. This property is to be divided equally between the two if they divorce.
This seemingly straightforward rule is quickly complicated by various types of assets, properties and obligations.
There are some exemptions from these divisions, including inheritance received by one of the spouses or profits from that inheritance. This is typically considered separate property. Other very specific business holdings and interests may also be considered separate property. Any and all exemptions, however, should be directed by a skilled divorce attorney.
Key Facts To Know About Property Division
Here are a few important points to keep in mind:
- Property division can affect child support and spousal support. The outcome of property division proceedings also impacts other facets of the divorce, including spousal support and child support. While much of this is guided by a preset formula, we will oversee this process to ensure that you are treated fairly.
- When separate property is mingled with community property, things get tricky. If an exempt inheritance was transferred into a community checking account and commingled, then property was purchased with those funds, there will often be disputes regarding whether that property will revert back to the heir. You need skilled legal representation on your side, tracing these funds.
- Businesses may or may not be community property. Certain other assets are likely to be called into question, including the division of a business or business interests. While a business or professional practice is generally considered community property, in specific situations certain business holdings are exempt from the division.
- Just as assets must be divided, so must debt. Many couples must consider the division of credit card debt, mortgages, medical bills, student loans and other forms of debt. For some families, this involves the timing of the divorce in relation to a potential bankruptcy.
To arrange an initial consultation with our Santa Rosa lawyer for the division of assets and debts, please contact our California law firm today at 707-542-8516. We are here to help.