Marital Property Division in California
- What do you have to protect?
- What do you want to accomplish?
The rules for the division of marital property in California are clear: We are a "community property" state. All assets — including retirement savings — and debts acquired during the course of a marriage are considered community property and are to be divided equally upon the dissolution of the marriage. But "divided equally" can be interpreted in different ways — to the benefit or detriment of either party.
For information about our law firm's approach to asset and debt division in divorce, please contact Hubbard, Unger & Urquhart in Vacaville, California. We offer 30 years of experience in family law. Whether your marital estate is simple or highly complex, our know-how can be of crucial benefit to you.
Knowledgeable, Competent, Cost Effective
E-mail or Call 707-448-7117
Consider this:
If a divorcing couple has $20,000 in the bank and $10,000 in consumer debt, we can divide the marital estate equally and give each party $10,000 in cash and $5,000 in debt. Both would be in a +$5,000 position.
But she might say, "He has a better ability to pay than I do, so give the debt to him."
If he takes the entire $10,000 in debt, we have to give him $10,000 of the money in the bank, so things are even. That leaves $10,000 remaining in the bank. We split that, so each party gets $5,000. Both wind up in a +$5,000 position.
It is a simple story that helps divorcing parties to understand there may be more than one way to reach a desired outcome. The picture becomes even more intricate when tax consequences are added to the formula.
Three Parties to Every Divorce
There are three parties to every divorce: the payer, the payee and the taxing authority. We can take money away from any one of those three for the benefit of the other two. The taxing authority is generally the involved party that our attorneys like to take the money away from.
One way of doing this is by shifting more money from the high-income to the low-income party. This gives the high-income person more of a tax benefit and, in so doing, reduces the actual cost to him or her. Sometimes, this can be accomplished by combining child and spousal support into family support.
Certified Family Law Specialists · 707-448-7117
To learn more about our experience in the division of marital property and how we can help you, please contact Hubbard, Unger & Urquhart today by phone or e-mail.
