Community 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 usually 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 - typically where what was acquired separately now becomes joint by operation of law or the execution of some title document.  Home refinance is 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 may be deemed to have deeded their separate property to the community estate.

Where parties commingle monies, which may be used to acquire and improve assets, or build equity with mortgage payments, complicated "tracings" must take place to separate community from separate property, particularly when one party wishes to assert their separate interest, or be reimbursed for a separate property contribution to the acquisition of a community asset.  If a spouse or partner is unable to provide these tracings because 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 substantially equal as long as their has been no breach of fiduciary duty, fraud, or misappropriations.  Courts have wide discretion over 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 rarely consider the possibility of divorce or legal separation when they marry.  They don't seek 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 later required - if the marriage fails.  Over 50% of first marriages and 65% of second marriages do end by way of divorce. 

The fact is our society acts as if we are all born with a knowledge about how to manage relationship, or its legal consequences, or the raising of children.  It isn't true.  Perhaps this may change one day, but for those of us in mid-life the results can be emotionally and financially devastating.

If you are not yet married or a registered domestic partner but intend to be, we urge you consider a prenuptial agreement.  You may also want to consider some form of pre-marriage education.  These options allow us to consciously participate in our lives.

Contact Palm Springs divorce and dissolution attorney Thurman W. Arnold today
for a free consult regarding your case.