How Does “Community Property” Work in the Inland Empire?
Community property can be a confusing concept for divorcing spouses in the Inland Empire. However, it is also an important concept during property division – and spouses should strive to understand it to the greatest extent possible. With a greater understanding of this concept, it may be possible to walk away from your marriage with greater financial security.
Milligan, Beswick, Levine & Knox, LLP have guided numerous spouses through property division in California – and they are some of the most experienced divorce lawyers in the Inland Empire. This established family law firm includes Stephen P. Levine, a divorce attorney who has been practicing law since 1977. We can help families understand how community property works in California – and we are committing to helping spouses mitigate the financial consequences of divorce.
Defining Community Property
California is one of the few “community property” states, and most of the other jurisdictions follow a system of “equitable distribution.” Depending on your circumstances, filing for divorce in California could lead to various challenges.
A community property state like California takes a more arbitrary approach to property division. Instead of considering various factors for an “equitable” outcome, California simply divides all community property in a 50/50 manner. It is important to understand that “equitable” does not necessarily mean “equal.” In California, however, both spouses can expect to walk away with an estimated 50% of all assets acquired during marriage.
In cases where dividing community property assets results in an unequal distribution, an equalization payment may be required to balance the division. This payment ensures that both parties receive an equitable share of the total value of assets, especially when one spouse is awarded more substantial physical or financial assets, such as a home or business. Equalization payments serve as a tool to make sure the division of property is fair, even if specific assets cannot be physically split in half. In the Inland Empire, this process follows California’s community property laws, ensuring fairness in asset distribution during a divorce.
What Counts as Community Property in California?
Various properties may fall into the category of “community property” in California. Generally speaking, community property includes anything that either spouse acquired during the marriage. From the moment you sign your marriage contract, you enter into a financial agreement to share everything you earn or purchase from that point onward. This agreement only ends when the marriage comes to a close.
Community property may include earnings from your career. It might also include investments you make during the marriage – including real estate purchases. Vehicles and boats can become community property, as can various collectibles or fine art pieces.
What Can I Keep After a Divorce in California?
That being said, not all wealth is community property in a California divorce. Anything you owned prior to signing your marriage contract is “separate property” and, therefore, ineligible for property division. For example, you might have owned a piece of fine art or a diamond necklace before your marriage. These assets would remain yours after the divorce – and you do not need to divide them with your ex.
In addition, separate property includes assets you acquired after your “date of separation.” In California, this is usually the “move-out date” of a particular spouse. When both spouses stop living under the same roof, their financial connection ends – and they are generally free to acquire assets without worrying about property division.
For example, you might move out of the family home and use your next paycheck to purchase a motorcycle. In this case, the vehicle would remain yours after the divorce – and you do not need to worry about dividing it with your ex. That said, it is important to document your date of separation to avoid unnecessary issues. Consider taking photographs of your move. Collect utility bills from your new residence – and anything else that might prove that you have legally separated from your ex.
Are All Assets Acquired During Marriage Automatically Community Property?
While most assets acquired during marriage are automatically community property, there are a few exceptions. The first is inheritance, which is always separate regardless of when you receive it. For example, your grandfather might pass away and leave you $100,000. You might divorce a few years later, and this sum would not be eligible for property division.
The second exception is a third-party gift. For example, your parents might give you a new car shortly after your marriage. If you divorce a few years later, you should be able to keep the vehicle without dividing its value with your ex. That being said, a gift is only separate property if it was clearly intended for you – and you alone. If your parents stated or implied that the gift was also for your ex, it may become community property. Gifts exchanged between spouses are not from “third parties,” and they are, therefore, community property.
There is always the danger of commingling assets in these situations. If you receive an inheritance during the marriage, resist the urge to “commingle” these funds with community property. It may become difficult or impossible to access these funds if you mix them with other assets in the marriage. A classic example is using inheritance (a separate asset) to pay off the mortgage on a family home (community property). That being said, experienced property division lawyers in California may be able to help “unravel” these commingled assets – ensuring that spouses receive their fair share.
Can a Divorce Lawyer Help Me Get More Community Property?
A divorce lawyer may be able to help you access more community property in California. One strategy is to show that you contributed to separate assets in a non-financial manner. For example, you might have maintained the family home by cooking, cleaning, and carrying out minor repairs. Even if the underlying property was purchased by your ex prior to the marriage, you may have contributed to its value in various ways.
In some cases, appreciated value on separate property may become community property. For example, your ex might have purchased shares in a company prior to the marriage. If the value of these shares skyrockets over the course of the marriage, you may be eligible to receive some of that value as community property.
Contact an Established Family Law Firm in the Inland Empire
It may be easier to divide community property than you realize – especially if you work with experienced family lawyers in the Inland Empire. Choose Milligan, Beswick, Levine & Knox, LLP to learn more about this process. While internet research is a positive first step, no amount of reading can provide the same level of personalized guidance as experienced divorce attorneys. Each family is different, and each spouse must approach community property based on their unique circumstances. To get started with an action plan, call 909-894–0812 today.
Stephen Levine, is a Board Certified Specialist in Criminal Defense — an honor achieved by only the top criminal law attorneys in California. Mr. Levine has over 40 years of experience in criminal defense and family law serving Southern California, and is a highly regarded Super Lawyer as well as AV Rated attorney.