How does the Court Separate Property and Debts?
In Califorina, the division of assets and debts in legal separation or divorce is led by the principle of equal division of the community estate. The law requires an equal division unless otherwise agreed to by the parties involved or specific statutory provisions applied that allow for an unequal division. This includes both assets and debts, which must be characterized as either community or separate property before division.
Difference between Community and Separate Property
Community property generally includes assets and debts acquired during the marriage, while separate property includes assets and debts acquired before the marriage or after the date of separation. Assets acquired in joint form during the marriage is presumed to be community property unless there is clear evidence or an agreement to the contrary. Debts incurred for the benefit of the family or couple during the marriage but before separation are typically divided equally, unless the community debts exceed the community assets, in which case the court may assign the excess debt in a manner deemed just and equitable, considering factors such as the parties' ability to pay.
What happens to Assests aquired outside of Marriage?
Separate property is defined as property owned by a spouse before marriage, property acquired during the marriage by gift, bequest, devise, or descent, and the rents, issues, and profits of such property. Separate property is not subject to division between the spouses and remains the sole property of the owning spouse. The court's jurisdiction over separate property in a legal separation or divorce proceeding is limited. The court may confirm separate property to the owning spouse but cannot dispose of or transfer separate property to the other spouse unless there is an agreement between the parties. However, if separate property contributions were made to the acquisition of community property, the contributing spouse may be entitled to reimbursement, given that the contributions can be traced to a separate property source and no written waiver of reimbursement exists.
Retaining Counsel
During a Dissolution of Marriage or Legal Separation it is important to ensure that you are informed and properly navigating the matter, especially when your assets and financial strength is involved. It is essential to have a confident and aggressive attorney to represent and advise you throughout the process. Owner and Managing Attorney Taryn Scharf is ready to represent and guide you through these difficult times, towards an ideal solution for you. At Scharf Law, P.C. our team is prepared to assist you with a combined total of over thirty years of experience. For more information regarding your specific matter, see below to schedule a consultation.
