Dividing up of community property is a constant stumbling block when attempting to reach an amicable marital agreement in any divorce procedure in California. The Law Office of David A. Martin & Associates in Sacramento has the experience to assist couples in reaching a fair division of the marital community property, and ensure that both the spouses are in agreement about the two main issues: the actual make up of the joint assets and any associated liabilities, which includes the true monetary worth of all of the assets.
Any uncertainties or disputes as to what is or is not included in the commonly owned property are referred to as characterization issues.
It is not possible to reach a conclusion about the fair dividing of any commonly owned property until you are absolutely sure exactly just what you are attempting to divide.
Community Property Characterization
The general rule surrounding community property characterization is fairly straightforward: If an asset was purchased or any debt took place during the period of the marriage it’s accepted as belonging to the marital community and comes in to play when dividing up assets in a divorce settlement.
There are two crucial exceptions to community property characterization: inheritances and gifts. Also, any applicable prenuptial or postnuptial agreement can change quite dramatically the characteristics of what is a community or simply a separately owned asset.
Complications of Property Allocation Need to be Assessed
There are a number of ways the central rule can become quite complex. What become important are the assets or any debts that are involved. Any final resolution of characterization problems can be vital to your future financial security. Just like the difference between business and personal assets can simply disappear due to careless book-keeping. Assets gained prior to marriage can merge as community owned property through what is called co-mingling which happens throughout the marriage.
Our attorneys can assess if your investments, any mortgage payments, or any other relevant financial activity throughout the marriage might put into doubt any of your liabilities or assets.
There are other characterization concerns that can become enmeshed into value that have to be identified when working out a reasonable property settlement such as the rise in value of an individual asset throughout the marriage which may be labeled as a community owned asset. Also, any part of any payments made throughout the marriage on a spouse’s personal debt can normally be recovered by the other spouse.
Our firm’s emphasis on exactness when handling community property characterization issues will have a significant effect on the solving of the financial concerns in your divorce settlement.