San Jose Asset & Debt Division Attorney
There are many difficult aspects of divorce. For those with kids, the hardest part may be deciding on custody and visitation. For those without children, the most complicated part of a divorce may be dividing assets and debts.
Asset and debt division in a divorce varies based on state. Most states are equitable distribution states, which means assets and debts are split fairly, but not necessarily 50/50. It may be 60/40, 70/30, or some other split.
California, on the other hand, is a community property state. This means that assets and debts are split in half. So if there is $1 million in the bank and you earned most of it, it doesn’t matter. Your spouse will get half, or half a million. This may not seem fair, but that’s the way property division works in the Golden State.
What about gifts and inheritances? What about retirement accounts? A San Jose asset & debt division attorney from Foster Hsu, LLP can answer your questions.
Separate vs. Marital Property
In a marriage, there are separate and marital property. Here are the differences between these two:
- Marital property. Marital property refers to assets and debts acquired by either or both spouses during the course of their marriage. This includes income earned during the marriage, real estate acquired during the marriage, investments made during the marriage, and any debts accrued during the marriage.
- Separate property. Separate property refers to assets and debts that are owned by one spouse individually and not subject to division upon divorce. This can include assets and debts acquired by one spouse before the marriage, as well as any inheritances or gifts received by one spouse during the marriage. Assets and debts can also be specifically designated as separate through a prenuptial or postnuptial agreement.
Other Aspects of Property Division in California
Asset division is based on valuation. Determining the value of assets is crucial for equitable division. This can include real estate, vehicles, retirement accounts, investments, business interests, and personal property. Valuation may be straightforward for some assets but more complex for others, such as businesses or intellectual property.
Debts acquired during the marriage are also typically divided equally between spouses, regardless of whose name is on the debt. This can include mortgages, credit card debt, auto loans, and personal loans.
Spouses can often negotiate a settlement agreement on their own rather than let the court decide. This can provide more flexibility and control over the outcome.
In addition to dividing assets, the court may order one spouse to pay spousal support to the other based on factors such as each spouse’s earning capacity, the duration of the marriage, and the standard of living established during the marriage.
Contact Foster Hsu, LLP Today
Property division can be complex in California. What all is included? What can I exclude?
The knowledgeable lawyers at Foster Hsu, LLP can help you differentiate between separate and marital property and make sure you get a fair outcome in a split. Fill out the online form or call 408-841-7200 to schedule a consultation with a San Jose asset & debt division attorney.
