Property Rights Attorney for the Desert Cities
Community Property
California is a “community property” state. All property and assets acquired and
debt incurred before physical separation is
presumed under the law to be subject to an equal division as between spouses or domestic partners if the relationship ends.
There are significant exceptions and qualifications to what property and assets are properly characterized as community property upon a California Dissolution or Legal Separation. For instance, property owned prior to marriage, or acquired by gift or inheritance during marriage, is the separate property of the recipient.
It is not uncommon for people to commingle their separate property with that of the community, and to inadvertently transmute (change the character of, typically by a change of record title) property from separate into community property - usually where what was acquired separately now becomes joint by operation of law or some title document. Home refinances are an example of when this occurs where a one party is added to the deed, often only because a lender required it. In such cases there are significant rights of reimbursement available to the party who contributed their separate property.
Where parties commingle monies, which may be used to acquire and improve assets, or build equity complicated "tracings" must take place to separate community from separate property, particularly when one party wishes to confirm or assert their separate interest or to obtain reimbursement for a separate property contribution to the acquisition of an asset. If a spouse or partner is unable to provide these tracings because, for instance, necessary documents cannot be found, he or she may lose valuable property rights.
Community property usually, but not always, is divided equally between spouses. California law requires that the net value of assets received by each spouse be equal as long as their has been no breach of fiduciary duty, fraud, or misappropriations. However courts have wide discretion how to accomplish this, and can award different assets to different parties so long as the marital balance sheet reflects and even overall division. The law also requires that separate property be confirmed to the appropriate party.
People typically don't consider the possibility of divorce or legal separation when they marry. They don't seek preventative legal advice about how the character of separate property might be affected by actions taken during the marriage, and they don't have accurate understandings of the legal consequences of most financial transactions. This creates costly problems - and a one reason why a knowledgeable lawyer is required -
if the marriage fails. Over 50% of first marriages and 65% of second marriages do end by way of divorce. If you are not yet married or a registered domestic partner but intend to be, we urge you consider a prenup agreement.
Contact Palm Springs divorce attorney
Thurman W. Arnold today
for a free consult regarding your case.