Understanding Division of Assets in Divorce

Divorce is not only emotional but it is also financial. The most significant steps in securing your future are understanding the process of assets division. This Leonard F. Bennett, P.C. article breaks down the important financial considerations and makes you make wise decisions at the challenging time.

By: Leon F. Bennett, Law Offices of Leon F. Bennett

California Family Code § 2550 says a judge “shall” divide community property equally unless the parties agree otherwise. That sounds simple, but this rule involves a detailed four‑step process:

• Identification. Everything you own and owe must be disclosed. This includes items such as all bank accounts, credit‑card balances, retirement plans, stock bonuses, and frequent‑flier miles.
• Characterization. Property acquired between the date of marriage and the date of separation is presumed to be community property. Separate property typically consists of premarital assets, inheritances, and gifts.
• Valuation. The value of assets is based on fair market value, and is generally measured as of the settlement or trial date and may require appraisals or forensic accounting.
• Division or Offset. The court (or the parties by agreement) allocates assets and debts to achieve overall equal division between the parties. Sometimes this means one person keeps the house and pays the other a cash “equalization” amount instead of literally cutting everything in half.

Because you have to be 100 % honest about every asset and debt, and can be fined if you’re not, consulting with a division of assets lawyer at the beginning is strongly advised.

Read the full article HERE.