| One of the major issues in any divorce is dividing | | | | whatever you buy with that money is also your |
| the property, commonly known as, "splitting the | | | | separate property. Of course, most of us don't |
| sheets." Before you start your divorce there a | | | | go into a marriage with the idea that we'll |
| few concepts that you should be familiar with. | | | | probably get divorced, so we tend to co-mingle |
| Community property: California is one of a handful | | | | our money in one bank account. Unless you can |
| of states that have community property laws. | | | | clearly trace the separate property interest, you |
| These laws are based on the idea that when two | | | | may have a hard time proving that it was just |
| people marry they become as one. Instead of | | | | your money that bought that little red sports car. |
| two separate individuals, you now have one unit | | | | Here are a few other examples of separate |
| and what's mine is yours and vice verse. | | | | property. If you inherit something that was left |
| Generally speaking, money and property acquired | | | | specifically to you, rather than to both of you, |
| during the marriage is owned 50/50 by the | | | | that's your separate property. In other words, |
| partners in the marriage. If you marry, buy a | | | | when Uncle Bob left you his wagon wheel living |
| house, and pay on it for ten years, then your | | | | room furniture, the will specifically named you, |
| spouse owns 50 of the equity in that house, | | | | rather than you and your spouse. Gifts specifically |
| whether or not he/she has worked at all during | | | | to one party, rather than both, are separate |
| the marriage. Likewise, your spouse owns half of | | | | property. You can even agree that what would |
| your car, your furniture and your clothes, and, | | | | normally be community property should become |
| theoretically, there should be an equal split of the | | | | the separate property of one spouse. For |
| value at the time the divorce is granted. | | | | instance, if you always wanted to start a bagel |
| I say, "theoretically," because there's rarely a 50 | | | | shop and your spouse was sitting on just enough |
| 50 split. In most divorces, the two people bargain | | | | cash for your start up costs, you might draw up |
| with each other about who gets what. Many | | | | an agreement giving her/him the house as |
| times, for instance, the man wants the boy toys, | | | | separate property in exchange for the cash. |
| such as the motorcycle and the stereo system | | | | Finally, anything you acquired after the date of |
| and the woman is more interested in the art and | | | | separation from your spouse is considered your |
| furniture. One person might agree to take the | | | | separate property. This is why California places |
| expensive sports car in exchange for the equity | | | | such a great emphasis on the date of separation. |
| he/she owns in the family residence. As long as | | | | People tend to buy a lot when they're going to |
| it's agreed to by the parties, the judge could care | | | | get a divorce. New cars, new clothes, new |
| less how the property is divided. If the spouses | | | | computers; basically they're trying to reestablish |
| get into a fight, of course, the judge will be aiming | | | | their sense of a separate identity by getting new |
| for as close to an equal split as possible. | | | | stuff. And, if you're still living with your spouse |
| One other thing that we should note briefly is that | | | | when you do that, it can be hard to prove that |
| even retirement benefits are considered | | | | you had intended to get a divorce and considered |
| community property, despite the fact that you | | | | yourself separated. |
| may not receive them for years. If you earn the | | | | One other concept we should mention briefly |
| benefits during the marriage, your spouse owns | | | | before closing is quasi-community or |
| one half of whatever you've earned. However, | | | | quasi-separate property. That's property that one |
| unless you've had a marriage of fairly long | | | | party or the other owns in another state which |
| duration, it's usually not worth fighting over. And, | | | | would be considered community or separate |
| with military retirement benefits, you do NOT | | | | property if it was in the State of California. So, |
| have any rights to them unless you've been | | | | why does that matter? It gives the judge a little |
| married over ten years (an example of federal | | | | more latitude in dividing the property. Remember, |
| law over-riding state law.) | | | | the judge only has jurisdiction over property |
| Separate property: Not everything that's owned | | | | that's in the state. If you own a strip mall in |
| by a married couple is considered community | | | | Kentucky, the judge can't award that to your |
| property. Some property is referred to as | | | | spouse, because he/she doesn't have any |
| separate property, meaning that there's no | | | | jurisdiction over property in Kentucky. BUT . . . |
| community interest in it. Pretty much anything | | | | with the concept of quasi-community property, |
| that you owned free and clear before you got | | | | the lawyers can drag that property in to the case |
| married is your separate property. If your house, | | | | and say, "Hey, your honor, this guy owns a mall, |
| for instance, was totally paid off before you got | | | | so my client should probably get the house." Even |
| married, there is no community interest in the | | | | though state law mandates a 50/50 split of the |
| equity. | | | | property, the judge can still say, "Well, that |
| Money you had in the bank before you got | | | | wouldn't an equitable division, since one party has |
| married is usually your separate property and | | | | so much more wealth than the other. |