When getting a divorce, you will need to address a wide variety of complex financial issues. Since California is a community property state, the property division process will need to address all of the assets and debts you acquired during your marriage and ensure that you and your spouse each receive an equal share of the marital estate. Retirement savings accounts and pension plans can often complicate asset division. These assets will need to be properly valued, and the right procedures will need to be followed when dividing them between you and your spouse.

Using a QDRO to Divide Retirement Accounts and Pensions

Retirement savings often represent some of the most valuable assets owned by a married couple. These may include employer-sponsored retirement plans such as 401Ks or individual retirement accounts (IRAs). In some cases, the full balance in an account may be considered marital property. However, if one spouse contributed to an account before getting married, some of the funds in the account may be considered separate property. The assistance of a financial expert may be needed to determine the value of an account at different points in time and establish the marital portion of these funds.

Determining the value of a pension plan can often be even more difficult, since the amount that a person will be able to receive in pension benefits may not be known until they reach retirement age. The actual value of these benefits will depend on the amount of income a person receives, the amount of time they worked in a pension-eligible position, and the number of years they expect to receive benefits after retiring. A person’s ex-spouse will be entitled to receive a percentage of their pension payments, depending on the amount of time they were married while working in the job where they earned these benefits.

One of the most challenging aspects of a divorce is the division of property between you and your spouse. Disagreements often arise over who will retain certain assets and debts, and splitting things up may put a strain on both of your finances. However, if you and your spouse are open to cooperation, you can reduce stress over the division of assets and take control by creating an agreement that works for both of you.

How Is Marital Property Divided in a California Divorce?

In California, assets and debts acquired by either spouse during the marriage are almost always considered community property, meaning they are jointly owned by the two of you. In a divorce, the court will ensure that community property is divided roughly equally between the spouses, and because divorce is considered no-fault in California, neither spouse’s behavior leading to the divorce will likely impact the distribution.

If you leave the decisions about property division entirely up to the court, the result will likely be financially equitable, but it may not account for each partner’s specific preferences. If you wish to have more control over the decision, you and your spouse should attempt to reach an agreement cooperatively. A skilled divorce mediation attorney can help guide your negotiations to minimize conflict and ensure that both of your interests are accounted for.

The divorce process can be an emotional and challenging time for all parties involved. Difficult financial decisions will need to be made as you separate from your spouse, and one of the most significant issues involves who will own your family’s home. Your marital home is likely to be one of the most valuable assets you own, and it can play a key role in the division of marital property. It is important to understand how California’s divorce laws address the division of residential property, and you should work with a family law attorney to determine the best way to proceed throughout the divorce process. 

Dividing Real Estate Property

As you work through the divorce process with your attorney, there are a number of critical steps you need to take regarding your residential property. First and foremost, you must establish whether the home is separate or community property. In the state of California, most assets and debts accumulated by either spouse during a marriage are community property, and they must be divided equally between spouses. However, assets received by one spouse as a gift or inheritance are typically considered separate property. Property purchased after the couple has separated, but prior to the divorce, is also regarded as separate property that will not need to be divided between spouses 

It should also be noted that property purchased or acquired prior to a marriage is generally considered separate property. However, a home that was separate property can become community property if the spouses agree to to redefine the asset or if it became commingled with community property during the marriage, such as when both spouses consistently made mortgage payments or shared other expenses related to the home. 

Getting a divorce can be a challenging time in your life. The process of permanently separating from your spouse is difficult enough, but addressing complex matters related to marital assets and child custody can make things even more grueling. While many divorces can be resolved amicably (including through divorce mediation), some spouses will look to do anything and everything they can to spite their former partner during divorce proceedings. One of the most common forms of foul play that can occur during divorce is hiding assets. If you believe that your spouse is attempting to conceal marital property, you will want to work with a family law attorney to determine your options. 

What Are Hidden Assets? 

In the state of California, all assets owned by a married couple are considered community property. In other words, any property accumulated during a marriage belongs to both spouses, barring a prenuptial agreement that states otherwise. If a spouse attempts to devalue an asset or conceal property from their spouse and the court, this is known as hiding assets. 

Hidden assets can come in various forms, but they are rarely as simple as concealing a physical item in a place where the other spouse cannot find it. Some of the most common forms of hidden assets include intentionally avoiding reporting income through tax returns or financial statements, setting up a secret bank account (which may be done through the use of a child’s social security number), or requesting that an employer delay paying wages and bonuses until after the divorce process is finalized. 

Couples who are planning to get married are not likely to be thinking about divorce. However, taking the time to consider how certain matters will be handled if their relationship ever ends can save them a great deal of difficulty in the future. By creating a prenuptial agreement, a couple can make decisions about issues such as the division of property or spousal support, ensuring that their rights and financial security will be protected, no matter what happens in the years to come. Here are some benefits that a prenuptial agreement can provide:

Protecting assets - California is a community property state, which means that property owned by married spouses must be divided equally during divorce. A prenuptial agreement can specify each spouse’s ownership rights to any property owned by a spouse prior to getting married or acquired by married spouses. This can be especially helpful when one or both spouses own business interests since an agreement can determine how business ownership will be handled and ensure that the business can remain operational after divorce.

Assigning responsibility for debts - If either spouse has significant debt, a prenuptial agreement can make decisions about who will be responsible for this debt after divorce. It may also specify how the spouses’ incomes will be allocated to pay for debt during their marriage.