Puja Sachdev | April 21, 2025 | Property Division
When spouses divorce, they must decide how to divide their property. Most states divide property based on equitable division, meaning what is fair and equitable. California is one of the few states that adopted a community property standard. Understanding California community property law is essential for protecting your rights during a divorce.
What Is Community Property Law in California?
California Family Code §2550 states that the court should divide the parties’ community estate equally. Exceptions include cases involving a written agreement (i.e., prenup or postnuptial agreement) or when the parties agree to the terms for the division of property.
The community estate usually includes all assets and income accumulated by either party during the marriage. Property may be titled in the name of one spouse or jointly. However, if the property was obtained during the marriage, each spouse has an equal interest in the property.
Some exceptions exist, including inherited property, gifts, and assets owned before the marriage or acquired after a legal separation. However, a spouse must be careful not to convert separate property into a marital asset during the marriage.
Declarations of Disclosure in a California Divorce
Each spouse must complete a preliminary Declaration of Disclosure. The document is intended to be a complete financial disclosure of all information. It may include information not included in the Schedule of Assets and Debts and the Income and Expense Declaration that the spouses must complete.
Information disclosed in the Declaration of Disclosure includes:
- Copies of the last two years’ tax returns
- A statement explaining all material information related to the value of community assets
- Identification of documents or other information related to the value of joint property
- List of all debts owed by the parties
- Complete and accurate list of all investment opportunities that arose during the marriage
The spouses must also complete an Income and Expense Declaration that includes information about the spouse’s income and expenses. The spouse must include income from all sources, including rental, investment, and retirement income. The form also requires the spouse to list all current and anticipated expenses.
The Schedule of Assets and Debts requires the spouses to list every asset they own or have an interest in, whether it is community or separate property. They must also include all debts they owe, including joint and individual debts.
These disclosures provide vital information important to the property and debt division. If you suspect your spouse is providing false information or incomplete information, your attorney may take several steps to uncover their deceit.
Dividing Community Property in a California Divorce
Community property will be divided 50/50 unless you have a written agreement stating otherwise, or negotiate a property division settlement with different terms. However, some assets are more complex than others.
For example, retirement accounts often include a mixture of community and separate property. Assets in the account before the marriage are separate property and are not subject to division. However, the earnings during the marriage are community assets.
Businesses can be challenging to divide because the spouses often disagree about the ownership interest and the value. The spouses may need to hire a business evaluator to determine the community interest in the business subject to division.
A family pet and other animals can be a point of dispute. If an animal was a gift to a spouse, the court may order the animal is separate property. If an animal has substantial value, such as a show horse, the court may award the animal to one spouse and offset the value in other community property. The future earnings the hours may generate would also be an issue.
Student loans for college tuition are also treated differently. Generally, the spouse who takes out the student loan is responsible for paying the debt. However, if the community estate substantially benefited from the education, the court may consider this factor when dividing marital property.
How to Divide Assets 50/50 in a California Divorce
It is impossible to divide most assets equally, other than financial accounts. For example, you cannot give a spouse one-half of a car or boat. Therefore, a property division case often begins by assigning values to the marital assets. Each spouse would own one-half of the net value of the community estate.
Typically, spouses negotiate to determine which items each spouse receives to divide the estate equally. In some cases, a spouse may want a specific asset. They may negotiate to divide the estate unequally, such as 60-40, to ensure they receive the specific asset.
The court decides if spouses cannot agree on how to divide the community estate. While community property laws give each spouse an equal interest, the court may consider whether a spouse needs a home. If so, they may award the spouse the home and give the other spouse assets equal to their interest in the house.
The best way to protect your interests is with the help of a San Diego divorce lawyer. Consult an attorney to discuss your legal options for property division in a California divorce.
Contact Our Property Division Law Firm in San Diego, CA
Contact our experienced San Diego property division lawyers at San Diego Divorce Lawyers, APC, today for legal assistance. Contact us at (619) 866-3756 to schedule a consultation.
We proudly serve throughout San Diego County. We are located in San Diego, California.
San Diego Divorce Lawyers, APC
2851 Camino del Rio S #430
San Diego, CA 92108
(619) 866-3756
