Understanding the California Community Property Law

Getting divorced in California means having to contend with the state’s community property law. California is one of only nine states that use this rule as opposed to an equitable division law. Your understanding of state law and how it may affect your divorce case can help you plan for the future with greater peace of mind.

How Do the California Courts Divide Property in a Divorce?

In California, when a couple gets married, the two become their own “community” in the eyes of the law. From that point on, all marital assets acquired by either spouse are considered to be owned equally by both spouses (with some exceptions). If the couple gets divorced, therefore, all community property is divided in half, with 50 percent going to each.

California Family Code § 2550 states: Except upon the written agreement of the parties, or on oral stipulation of the parties in open court, or as otherwise provided in this division, in a proceeding for dissolution of marriage or for legal separation of the parties, the court shall…divide the community estate of the parties equally.

Reach out to a divorce attorney in San Diego to learn more.

Community vs. Separate Property Within a Marriage

The community property law applies to all assets acquired by the couple, as well as debts and liabilities, with the exception of separate property. Separate property is not subject to division in a California divorce case because it belongs to an individual spouse rather than the “community.”

Separate property refers to anything owned by either spouse prior to the marriage. However, if the couple commingled their assets upon marriage (such as creating a joint bank account), separate property may become marital property. Separate property also refers to any gifts or inheritances received by one spouse during the marriage.

How to Protect Your Assets From the California Community Property Law

California’s community property law means that you may lose some of your hard-earned assets to your ex-spouse in a divorce case in San Diego. If your case goes to court, a judge will divide all of your marital property 50/50, regardless of whether this is fair or equitable for either of you. Luckily, there are things you can do to prevent this outcome.

Prenuptial Agreement

A prenuptial agreement is a legally binding document that can override California’s community property laws. As long as your prenup (or postnup) is legally valid and enforceable, the courts will abide by the terms you and your spouse agreed upon for how to divide your property in a divorce, rather than reverting to the community property laws.

Divorce Settlement

If you do not have a prenuptial agreement, you can still protect your property as much as possible by achieving a divorce settlement. A settlement is an agreement between you and your ex-spouse to abide by the terms that you wish, including how to divide property, instead of going to court. You can work with an attorney to come up with the terms of a settlement to avoid a trial.

The Benefits of Hiring a Property Division Attorney in San Diego

If you wish to protect your assets from California’s community property law, you need to take proactive steps. Property protection begins long before a divorce, with actions such as prenuptial agreements and keeping your assets (and debts) separate. Be cautious of how you commingle your assets after marriage. Planning ahead can help you prevent asset losses.

Even if you weren’t proactive, there are still ways to protect your assets. You can consider legal separation instead of a divorce, for example, or hire an attorney to help you reach a settlement agreement. For personalized advice about how to navigate California’s community property division laws during your San Diego divorce case, contact us at Boyd Law for a free consultation.