Property division is a frequent point of contention in a California divorce. This is true whether a couple has accrued wealth or is of more modest means. People want to retain as much as possible when they end a marriage. However, there are layers of complexity when going through the assets, when they were acquired, and who is entitled to retain various properties.
In some instances, differentiating between community property and marital property is easy. In others, the assets have become commingled, making division more complicated. During the case, it is important to understand how commingled assets are assessed and what options are available.
How will my assets be categorized?
There are three types of property: separate property, community property and commingled assets. Separate property is that which a person owned prior to the marriage or after the date the couple separated. Community property (also referred to as marital property) is what the couple amassed after they were married and prior to separating.
Note that, in some cases, there is something of a fourth category: quasi-community property. If the couple resided outside California while they were married, anything earned or debts accrued while they were outside California is quasi-community property.
Commingled assets
If, for example, the couple lived in a home owned by one prior to the marriage, but the other person contributed significantly to its upkeep, improvement and subsequent increase in value, then it could be considered commingled. A retirement account that one held before they were married but rose in value while they were married could also be considered commingled.
A common issue involves one spouse who had started a business before the marriage and the other helped with its growth while they were married. The value would need to be analyzed from before the marriage and after the marriage. It would likely be a commingled asset and need to be shared accordingly.
Be prepared for a divorce case and splitting assets
Commingled assets can be among the most confusing parts of a family law case. This can lead to a contentious dispute as to how it will be divided in a way where both sides feel they are getting what they believe they are entitled to. Negotiating is often a preferable way to address any property issue. If that is not possible, then the court needs to decide. No matter the circumstances, it is useful to have caring, accessible, and experienced guidance to navigate the case effectively.