Newport Beach Property Division Lawyers
Equitable Distribution of Assets in Newport Beach Divorces
One of the main concerns in any divorce is the division of assets. Because California is a community property state, the court generally divides assets “equally” between the two spouses. This does not necessarily mean that property will be divided 50/50 but, rather, that the court will determine an equitable division of the couple’s various community properties and allocate assets to either spouse based on this determination.
At Kovach Family Law, we can help you understand how property division works in California divorces. What’s more, our Newport Beach property division attorneys can help ensure your rights are protected throughout the process. We understand how important the division of assets is, and our goal is to protect your best interests and your future.
Contact Kovach Family Law for a Free Consultation. Call (877) 782-0445 or submit a secure contact form today.
How Are Assets Divided in a Divorce?
Under California’s community property rule, assets (and debts) are divided equally between two divorcing spouses. This means that both spouses should essentially receive half of their shared assets, including real estate properties, vehicles, personal property, income, interest accumulated on retirement accounts and pensions, shared businesses, and more.
Because many properties—such as a shared family home—cannot actually be divided equally between two parties, the court will assign values to the divorcing spouses’ various community properties. After subtracting the value of any shared debts, the court will then award each spouse half of the net community estate value.
This can look different depending on the specific details of a given situation. For example, the court may award one spouse the family home and the other spouse any investment properties or vacation homes the couple shared. Additionally, under California law, the two divorcing spouses may choose to hold community property together after the divorce, or one spouse may “buy out” the other spouse’s share of a particular asset. The divorcing spouses may also choose to sell various assets and each receive half of the proceeds.
Community vs. Separate Property
It’s important to note that California’s community property rule only applies to community property.
The state distinguishes between community (or marital) property and separate property in the following ways:
- Community Property: Generally speaking, community property includes any assets (with certain exceptions) obtained or accumulated by either party during the marriage. This includes real estate, personal property, investments, and interest or income earned on 401(k)s or other retirement accounts. Most property in a California divorce is presumed to be community property unless a spouse can prove otherwise.
- Separate Property: In California, separate property includes any properties or assets owned exclusively by one spouse before the marriage, as well as profits, interest, income, rents, and issues earned on or in relation to separate property. Properties acquired by only one spouse during the marriage as a result of a gift, inheritance, or under the terms of a will are also considered separate properties in the state of California.
Can Separate Property Become Community Property?
In some cases, it is possible for separate property to become community property. This can occur either through “transmutation,” wherein the two spouses agree in writing to reclassify separate property as community property, or “commingling,” in which separate property is combined with community property. For example, most people enter a marriage with separate bank accounts. They may, at some point, change these individual accounts to shared accounts, allowing both spouses to contribute income and make withdrawals. At this point, the separate accounts would become community property.
The same is true if one spouse already owns a home before they get married. If the other spouse makes payments on the mortgage or handles other related expenses, the house will be considered community property by the court.
How Our Property Division Lawyers Can Help
The division of assets (and debts) in a divorce can be a complex, stressful, and emotionally charged process. At Kovach Family Law, we work with our clients to streamline the division of assets while ensuring their rights are protected.
Our Newport Beach property division lawyers have extensive experience helping clients navigate complex divorce issues. We are well-versed in both contested and uncontested divorces, as well as all the issues that come with them. As your legal counsel, we will remain readily available to answer your questions and provide the consistent communication you need to feel confident moving forward. We go to bat for our clients and are prepared to do everything we can to obtain the best possible outcome.
Contact us today at (877) 782-0445 for a free consultation with one of our experienced and compassionate attorneys.
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