Is California a Community Property State?

Yes, California is a community property state. This has many implications for couples when they decide to end their marriage, whether by divorce or a legal separation.

The Beverly Hills divorce attorneys at S.L. Pitts PC receive many questions about community property laws in California. Clients have asked us who will get what during the divorce and how this property is split. They’ve also asked if there are exceptions when it comes to community property during a divorce, and how California laws affect the way assets and debts get divided.

Below is a general rundown of community property for married couples in California. We’ll also consider how separate property can get mixed with community property, how high-asset divorces make matters even more complicated, and the role of prenups and postnups when property gets divided.

If you need immediate legal counsel or a consultation, contact our Beverly Hills family law attorneys today.

What Is Considered Community Property in California?

Community property refers to any property that a married couple acquires during the course of their marriage. This includes income earned by each spouse during the marriage and anything the spouses bought during the marriage.

There are a few exceptions to this, however. Any gifts received by one spouse or inheritance received by one spouse are not considered community property.

Community Property Includes Both Assets and Debts

It’s also worth noting that community property refers to both assets and debts that are accrued during a marriage. Many couples fail to consider their combined debts when they are thinking of their property.

As you think about anything you’ve purchased or spent with your spouse during the course of your marriage, or how much a married couple you know has accumulated over the years, you can see just how much property is covered by community property.

Do Domestic Partners Have Community Property?

Yes.

Domestic partners are subject to the same community property laws as a married couple would be in a divorce.

What Is Considered Separate Property in California?

Separate property generally refers to any property that belonged to someone before they got married. This may include a motorcycle you owned before getting married, an apartment you bought while you were single, or the student debt you still haven’t paid off prior to your wedding day.

As we noted above, separate property can also refer to any gifts or inheritance received by one spouse during a marriage or partnership.

Separate Property Includes Both Assets and Debts

As with community property, it’s important to remember that separate property applies to both assets and debts held by a spouse.

In some divorces, a former spouse may try to claim their ex’s separate property as part of the community property in their marriage. This can be particularly contentious when someone tries to offload their debt on their ex in a divorce rather than keeping their debt as their own.

When issues arise involving the classification of property in a marriage, our law firm can help advocate for you.

What Happens to Community Property and Separate Property in a Divorce?

When property gets divided in a divorce, the community property is divided according to California law. As for separate property, each spouse gets to retain their separate property and that separate property is not subject to division during the divorce.

A 50/50 Split for Community Assets and Debts

Per California Family Code §2550, community property is typically split evenly between spouses in a divorce. That means each spouse will receive half of all community property. Debts can be used to offset assets in a divorce, allowing the community property division to be more equal.

Even when the math says that there’s an even 50/50 split of community property, there may be specific of property that both spouses want—a house, a car, a bank account. This is why the division of property during divorce is so contentious and the source of many disputes and hard feelings.

If you and your ex are fighting over who gets what during the division of community property, our Southern California divorce lawyers in Beverly Hills can help you.

What Are Commingled Assets and Debts?

We’ve established what community property is and how it is different from separate property. Yet there is another kind of property in a marriage that is also the source of many disagreements. This property is known as commingled property.

Commingled property is when separate assets get blended with community property during a marriage. This is common in many marriages just given the nature and reality of cohabitation and being married to someone.

For instance, you may own your own home before getting married and you decide to make your spouse a co-owner. Your spouse may deposit money in the bank account you had before getting married. Some couples even combine their investment portfolios from before marriage into a single account after they’re married.

You can already sense how tangled these kinds of assets and debts can be, and why disentangling this kind of property is so challenging.

What Happens to Commingled Property in a Divorce?

During a divorce, commingled property is often treated as if it is community property and is subject to even distribution. The problem is, many people involuntarily commingle assets, and they become defensive and frustrated when their property is set to be divided in a divorce.

This is where many heated arguments arise during divorce proceedings as both feel some sense of ownership or entitlement to this shared asset.

Community Property Complexities in High-Asset Divorces

The disputes over community property and commingled property only get more heated when a couple has a high net worth. High-net-worth married couples tend to own significant assets, which could include stocks, business ventures, multiple motor vehicles, high-value real estate, investment accounts, retirement accounts, valuables, collectibles, crypto currency, and other kinds of digital assets.

Given how much is at stake in high-asset or complex-asset divorces, it’s important to have skilled Southern California divorce lawyers on your side who understate the nuances of state laws regarding community property and commingled property. Our Beverly Hills family law attorneys are ready to offer much needed insight when these kinds of disputes arise.

Can Prenuptial Agreements Affect the Division of Community Property?

Yes.

Both prenuptial and postnuptial agreements allow married couples to get around California’s 50/50 division of community property. In a prenup or postnup, couples can define how assets and debts will be divided in the event of a divorce.

Prenups and postnups are not cynical moves that predict a relationship is destined for divorce. Instead, prenups and postnups can help many couples start a discussion about their finances together, and even protect each other’s interests. In fact, a 2022 survey by The Harris Poll found that 42% of American adults support the use of prenuptial agreements; 35% of unmarried respondents to the survey said they would be open to signing a prenup in the future.

If you have a prenuptial or postnuptial agreement in place, our Beverly Hills divorce lawyers can consult the document while working on the division of community property.

If you’re getting married and have questions about drafting a prenuptial agreement or if you’re married already and what to know if a postnuptial agreement is right for you and your spouse, contact our Beverly Hills family law attorneys today.

How Our Beverly Hills Divorce Lawyers Can Help with Property Division

When clients work with our divorce lawyers in Beverly Hills, they will receive close attention and honest counsel. We can help identify meaningful separate assets you want to keep that may be lumped into community property or commingled property.

At S.L. Pitts PC, we hope to provide clients with peace of mind throughout the whole divorce process. We can keep you focused and grounded while property gets divided, and can make sure you have all the answers you need as the proceedings move forward.

Other Aspects of a Divorce Our Beverly Hills Family Lawyers Can Address

The division of property is just one of the many aspects of a divorce our lawyers can help with. In addition to community property and commingled property disputes, our attorneys can also assist with these issues that often come up in divorce proceedings throughout California.

Alimony/Spousal Support

Spousal support payments help cover one spouse’s living expenses as part of the end of the marriage. Alimony is paid by the higher-earning spouse to the lower-earning spouse, and it can be paid in divorces or legal separations.

The purpose of spousal support is to ensure the lower-earning spouse has a comparable standard of living when the marriage ends. These spousal support payments may be temporary, or they may be required for the spouse’s long-term needs.

Whether you’re paying alimony or are going to receive spousal support, our divorce attorneys can offer our advice, help you learn how much alimony you can expect to pay or receive, and assist you in planning your future financial goals outside of marriage.

Child Custody

If you and your spouse have children, you’ll need to discuss a child custody arrangement. There’s physical custody (where the child lives) and there’s legal custody (the ability to make decisions about your child’s upbringing and care). The parent who has physical custody of their child most of the time is the custodial parent, and the other parent is the non-custodial parent.

In many cases, parents share custody and parental responsibilities together even though one parent may have a child more than the other. However, sometimes it’s in a child’s best interests to be raised by just one parent. These situations tend to involve an unfit parent, a history of abuse, or other circumstances that make someone unable to raise a child in a nurturing and loving environment.

Child Visitation Rights

Also known as parenting time, this refers to children visiting the non-custodial parent. Some parents work out a reasonable and flexible schedule together, while others may have a more fixed calendar for when a child is with each parent. Neither is better than the other since families and schedules differ.

As with child custody, there are situations in which visitation rights may be restricted to ensure the safety and best interests of the child. Supervised visitation is an example of this, with a third party observing parent-child interactions. This third party has the ability to intervene and end the visit as needed. For some children, it may be best to end contact with the other parent.

If there were issues with domestic violence and spousal abuse, our lawyers can help protect you and your child from further trauma. Similarly, our family law attorneys can note instances of parental alienation if your ex is trying to turn your children against you.

Child Support

Making child support payments is crucial for the proper upbringing of a child. These payments are made by the non-custodial parent to the custodial parent to cover shelter, food, clothing, health care expenses, and other costs associated with raising a child.

Late child support payments can be an issue with some parents. There’s also the matter of modifying child support amounts due to changes in employment, a medical emergency, or a financial hardship. Our family law attorneys can assist you when these situations arise, answering your questions and offering peace of mind.

What Sets S.L. Pitts PC Apart from Other Beverly Hills Family Law Practices

Founded in 2001, S.L. Pitts PC brings decades of experience to every family law case we work on. There are four common reasons why people in Beverly Hills and the greater Los Angeles area turn to our divorce attorneys for guidance:

We will always be honest about your situation
We will develop creative and collaborative solutions
We will keep all communication confidential
We will always focus on the best interests of your child

Have More Questions About Community Property? Contact S.L. Pitts PC for Answers

At S.L. Pitts PC, we’re ready to provide you with more information about community property and commingled property while getting a divorce in California. Do not hesitate to contact our Beverly Hills family law attorneys today. Our lawyers are here to help you.