Division of Assets and Debts
San Diego’s Family Law Firm Naimish & Lewis will Guide You Through This Difficult Process in All Family Law Matters.
The State of California is a community property state, which means all assets and liabilities you and your spouse acquire during the course of your marriage are both of yours and therefore must be equally divided in a dissolution of marriage or legal separation proceeding. Property that one spouse owned before the marriage, in most cases, is considered separate property and is not subject to this same division.
Whether you have been served with a Petition for Dissolution of Marriage or you are thinking about filing for divorce, but do not know what to expect, the Court has provided legal steps you will need to follow, and Naimish & Lewis is here to help guide you through this difficult process.
Under Family Code §2550, the court shall have the authority to divide the property of the community estate. The good news is, if you and your spouse are in agreement on who will receive what assets and how the debts will be divided, there is no need for the court to get involved in the division. This is where the attorneys at Naimish & Lewis, APC can assist you and advise you of your interest in all property and debts and work with the other party or opposing counsel to divide the assets outside of court and make sure you will be receiving a fair outcome in your case.
After you or your spouse have filed a Petition for Dissolution of Marriage or Legal Separation, identifying all assets and debts, whether separate or community is typically the first step in your case.
The assets and debts that are often subject to division are:
- Real estate (family home, rental properties, undeveloped land, investment properties)
- Items of value within the home/jewelry and collectables
- Vehicles, including boats, motorcycles, etc.
- Checking, Savings and Investment Accounts
- Insurance Policies
- Retirement plans, including IRA’s, 401K’s, 403b’s, military pensions
- Business Interests
- Credit card debts
While dividing the community estate may be relatively straightforward, issues can arise when determining how to divide property that is of “mixed character,” that is, separate property that has a community interest. For instance, in a case where one spouse owns a home before marriage and pays the mortgage or any property-related expenses after marriage with community funds, the community now has an interest in the separate property. Luckily, the attorneys at Naimish & Lewis, APC are familiar with mixed character property and can assist you in determining your interest.
When all assets have been identified in your case, it may be necessary to place a value on them. Appraisals can be done to determine the value of the home, Kelley Blue Book values can be used to determine the value of the vehicles, or personal knowledge can be used to determine the value of any additional items.
When there is a large community estate, the court may appoint an expert to determine the value of all assets subject to the division.
When the community property in a proceeding has been deliberately misappropriated, that is, the community property has deliberately been used for a separate property purpose; the court can award the entire asset to the other party. An example of misappropriation of property is if one spouse were to withdrawal funds from a joint bank account and open another separate bank account and put the community funds into the new bank account, without the other spouse knowing.
In a situation where one spouse acquired property during marriage that is located outside of the state of California, this property is referred to as “quasi-community” property. It is “quasi” because if it had been acquired in the State of California it would be considered community property.
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At Naimish & Lewis we have the highest reputation for providing you and your family with the respect you deserve. We will help you navigate the stress and complications of family law while keeping the focus on what is best for you and your family. We do this with years of experience and compassion for your family. We will be your advocate.
You may be in need of a little advice right now. We’d like to meet you. If you are struggling with a serious family law issue or you’re planning for the future, Naimish & Lewis can help. Connect with us now for guidance from one of our experienced attorneys. Contact Naimish & Lewis, APC today.
