How Are Trusts Handled in a Divorce Property Division?
California Divorce, Mediation, Property Division, Property Division

How Are Trusts Handled in a Divorce Property Division?

Divorces routinely involve property division questions. Some may be simple and straightforward, but determining marital and separate assets is often complicated. One common question is how trusts are handled in a divorce property division. Certified Family Law Specialist Judy L. Burger explains more about trusts and property divisions in California.

What Is a Trust?

“A trust is a legal entity with separate and distinct rights, similar to a person or corporation. In a trust, a party known as a trustor gives another party, the trustee, the right to hold title to and manage property or assets for the benefit of a third party, the beneficiary.”

A trust is a useful tool for managing and distributing a person’s finances both while they are alive and after their passing. It can help an estate avoid taxes and the probate process, protect assets from creditors and specify how inheritance should be handled for beneficiaries.

Married couples may establish one or more trusts for various reasons:

  • Tax planning
  • Medicaid planning
  • Retirement or inheritance planning
  • Providing for a special needs child or family member
  • Charitable giving
  • Securing business assets

Different types of trust have varying rules that govern how they are used, protected, and divided in a divorce property division.

Trusts and Property Division

Under California law, trusts are separate property of the named beneficiary spouse. Trust assets are then not considered “community property” and, therefore, are not subject to equitable distribution. Moreover, any income and principal paid from a separate property trust to a beneficiary spouse remains their separate property as long as it is not comingled with marital funds.

For example, a trust that is funded by a third party or source (not the beneficiary) through a gift or bequest and is governed by a separate trustee is the sole property of the beneficiary and not considered community property.

  • A trust created with assets before the marriage
  • A trust given to one spouse by a gift or inheritance

Irrevocable trusts are also better protected during a divorce property division. The beneficiary spouse is not in control of the assets, and they are not considered community property.

Depending on the type of trust, other special circumstances may apply. It is best to discuss your situation with a seasoned California Property Division Attorney like Judy Burger to ensure you fully understand your rights and options.

When Is a Trust Considered Community Property?

When trust funds are placed into a joint account, used to purchase a marital asset, or used for regular marital expenses, these funds are no longer considered separate property and become community property.

An exception exists if separate property contributions are used for a down payment on or for improvements to an asset; they will retain their separate property status as long as documents trace that contribution. Any funds remaining in the trust or a separate account will continue to be considered the separate property of the beneficiary spouse.

California Property Division Attorney

The rules governing California property divisions and trusts are complex, so you need an experienced CA Property Division Attorney to help you understand them and how they apply to you. Certified CA Family Law Specialist Judy Burger can examine the assets in trusts and determine how they fit into a divorce property division. Her role is critical to ensure an equitable legal division and protect your assets and rights.

If you are considering a divorce in California and have assets in a trust, contact The Law Office of Judy L. Burger as soon as possible. We have eight convenient offices throughout the Golden State to give you the personal attention you deserve. 

Is My Retirement at Risk in a CA Divorce Property Division?
California Divorce, Property Division

Is My Retirement at Risk in a CA Divorce Property Division?

People are living and enjoying the fruits of their labor longer than ever before. Planning and investing for retirement are some of the wisest decisions married couples can make. But what happens to your retirement assets in the event of a divorce? Handling retirement funds in a divorce is complex, and without the right help, you could make serious mistakes and lose most of your assets. CA Certified Family Law Specialist Judy L. Burger shares what you need to understand about retirement and a divorce property division.

Sharing Pensions and Retirement Plans

All kinds of pensions and retirement plans exist. They all share a common factor: a person and/or an employer pays into the account, which accumulates with interest over time to provide a living after retiring from active employment. Your spouse may also pay into the same pension or retirement plan, or have one of their own.

Some of the most common plans in California include:

  • Employee benefit plans
  • Defined Benefit Plans
  • Defined Contributions Plans
  • 401(k)s
  • CalPERS
  • LACERA
  • LACERS
  • CA State Teachers’ Retirement System
  • LA City Employees’ Retirement System
  • Federal Employees’ Retirement System
  • Military pensions
  • 457 plans
  • 403b plans
  • 401a plans

Retirement and Community Property

California is a community property state, meaning any assets or debts obtained from the date of marriage to the date of separation, except for gifts or inheritances to the individual, are considered to be community property and are divided equally between the parties in a divorce. 

This means that any retirement accounts that received marital funds are considered community property and are subject to the 50/50 asset division. Even if only one spouse contributed to the pension or retirement plan, depending on when the payments were made, both spouses may have a right to the money in the plan.

California law may allow interest earned on pre-marital contributions to be considered separate property and not subject to division with the other spouse. Therefore, you may be able to claim a retirement account opened before your marriage as separate property.

Protecting Your Rights and Assets

Dividing a pension or retirement plan between spouses in a divorce property division requires a special order called a Qualified Domestic Relations Order (QDRO) or a Domestic Relations Order (DRO). QDROs are utilized for private retirement plans, while DROs are used for state and federal public retirement plans. This legal order specifies how much each spouse receives. Unless there are separate agreements that apply, the funds qualify as community property and will be divided equally.

A QDRO/DRO takes time to prepare, file, receive a court signature, and be served on the retirement account holder. Before this order becomes binding, a spouse participating in the plan could withdraw some or all of the funds without notifying the other spouse. You may be able to contest this action, but that will take time and money.

Also, without a QDRO/DRO in place before the divorce is granted, someone else may inherit the retirement or pension assets in the event of a death because you are no longer the rightful heir.

Get Seasoned Help for Your Divorce Property Division

The Law Offices of Judy L. Burger helps Californians negotiate the rocks and shoals of divorce and its many details. Among the most complex is dividing marital property—especially pensions and retirement accounts. Judy Burger is a Certified Family Law Specialist with notable experience in property divisions who can help you ensure a fair and equitable distribution of assets in your divorce.

Don’t risk everything you’ve worked for – contact us right away for guidance and representation in your California divorce. We have eight locations throughout North, Central, and Southern California to serve you.

 

Do You and Your Divorcing Spouse Own a Business?
California Divorce, Property Division, Property Division

Do You and Your Divorcing Spouse Own a Business?

Dividing assets in a California divorce can be challenging, especially when the spouses jointly own a business. What will happen to your business in the divorce? A variety of factors come into play with business valuations in a California divorce property division. Do you and your divorcing spouse own a business? California Family Law Attorney Judy L. Burger reviews some common challenges.

Jointly-Owned Businesses Are Community Property in California

In the state of California, the concept of community property applies in divorce or legal separation cases. This means that all assets and property acquired by the couple during the marriage are divided equally. Any property or debts obtained while the marriage is intact are considered community property, while separate property includes assets owned by one spouse before the marriage or gifts given only to one spouse.

Separate property is not subject to division in a divorce case, as the courts do not have the authority to distribute one party’s separate property to the other.

In divorce cases, a business owned jointly by the spouses is classified as an asset and is subject to division between the parties. Valuing the business can be difficult as each spouse may have different opinions about its worth, and some of these opinions may be challenging to quantify objectively. As a result, disputes and conflicts frequently arise in these situations.

Court Considerations When Dividing a Jointly-Owned Business in a Divorce

Courts weigh many factors when dividing a business. Attorney Judy L. Burger works with various real estate, business, and financial professionals to establish the best valuation of your business to facilitate a fair and equitable division of assets. However, there are many legal and intangible factors that come into play when seeking the most equitable division of a business and its assets. Here are some of the critical factors the court will weigh in its decision:

  • Did the business exist before the marriage?
  • Was your spouse formally added to the business’ ownership documentation?
  • What is the business’ legal structure (sole proprietorship, LLC, partnership, S-corporation, etc.)?
  • Is there a formal partnership agreement including the spouse?
  • Has the business been operated under a sole proprietorship, although both spouses worked in the business?
  • Are other partners involved besides the divorcing spouses?
  • What is the percentage owned by each partner?
  • How involved was each spouse in running the business?
  • What value does each spouse bring to the business?
  • Did one spouse borrow from family funds to buy something for the business?
  • Can one partner buy out the other(s)?
  • How will the remaining family assets and liabilities be divided?
  • How will each spouse earn a living outside of the business?

What If I Owned the Business Before the Marriage?

If you started your business before getting married and did add their name to business documents or legally make them a co-owner, the business may be considered separate property in a divorce. This could protect the business from being divided as community property.

However, you may still have to share the business’ appreciation that occurred during the marriage. During your marriage, the increase in value of the business and the income generated may be viewed as community property.

Also, your spouse’s contributions to the business during your marriage will be considered. This may involve actively working for the business or supporting the household while you focus on work.

Get Help with Business Valuations and Property Division in a CA Divorce

Determining the value of a business in a divorce case is a complex task that requires specialized skills and knowledge. Certified Family Law Specialist Judy Burger collaborates with seasoned valuation experts to guarantee an equitable and precise assessment of your business. She is dedicated to upholding fairness and protecting your rights throughout the divorce and property division process.

Contact The Law Offices of Judy L. Burger for more information and to schedule a consultation.

 

Splitting Liabilities in a CA Divorce
California Divorce, Property Division, Property Division

Splitting Liabilities in a CA Divorce

Dividing assets and liabilities in a California divorce can be problematic. Some elements of property division are not cut and dried, and many factors can influence how these arrangements are made. Many are concerned about getting their share of the assets from a marriage, but what happens to the debts?

Certified Family Law Specialist Judy L. Burger addresses the complexities involved in splitting liabilities in a CA divorce and how she can help.

Community Property and Debt

California operates under the community property principle, a system designed to ensure fairness. This means generally that, in the absence of other arrangements, both parties will receive an equal share of everything they acquired while married. Any separate property owned before the marriage or obtained after the separation remains the owner’s sole property, providing a sense of security in the process. There are complex exceptions to the division of property acquired during marriage or prior to marriage. 

However, the community property principle also applies to debt. Other arrangements can also come into play here, but typically, both parties in a divorce are responsible for half of the debt incurred  during the marriage.. Unfortunately, these issues are not always so black and white—they more often appear filled with grey areas.

A CA Property Division Lawyer like Judy Burger can work with you to help make the best decisions and arrangements.

Dividing Debt in a California Divorce

Property division can be confusing because of so many potential exceptions relating to community, separate, and co-mingled assets. Here are just a few potential examples:

  1. The divorcing couple’s marital debts are greater than the value of their community assets. A family law judge may assign more debt to the spouse earning more income.
  2. Some marital debt incurred by one spouse may be ruled as separate debt by the judge due to extenuating circumstances (like a cheating spouse using family money to buy gifts or fund travel for the affair).
  3. Student debt funded by marital income may be ruled as separate debt to the one benefitting from the education. One spouse may be directed to reimburse the other for a portion of the student debt already paid.

Complex situations like these are why you need an experienced CA property division lawyer on your team to help ensure you are treated fairly.

Date of Separation and Property Division

California is somewhat unique in that it uses the date of your separation to distinguish between most marital and separate property. Most other states use the official date of the divorce. Once both parties agree the marriage is over, they are considered to be leading separate lives (even if they still live together). From that moment, both are acquiring separate assets and debts.

This is a significant matter in your divorce, but agreeing on a specific date of separation can be tricky. The exact date can be argued from many points and affects which assets and debts are to be retained, split, or surrendered to the other spouse.

Get Experienced Help with CA Property Division

California Certified Family Law Specialist Judy Burger has the resources, working relationships, and expertise to help with the most complex property and debt divisions and business valuations. She harnesses the expertise of various professionals to help ascertain pertinent facts that influence who should be responsible for debts and how assets are to be divided.

Spouses and their attorneys cannot always be trusted to act fairly, so you need an experienced lawyer guarding your best interests. Decisions and arrangements made during these negotiations can affect your life and future. Contact Attorney Judy Burger at one of her eight offices conveniently located throughout California to schedule a consultation.

 

Exploring Business Valuations in a Property Division
Property Division

Exploring Business Valuations in a Property Division

One of the most contentious issues in divorce proceedings is dividing property and assets. This can be especially challenging when a couple owns a business together. In such cases, business valuations are an integral part of the property division process. CA Certified Family Law Specialist Judy L. Burger understands the intricacies of business valuations in a property division.

She has numerous long-term working relationships with area Forensic Accountants and Actuaries, Ligation Real Estate Appraisers, Real Estate Attorneys, Business and Corporate Attorneys, Title Companies, and Real Estate Professionals who assist her when business valuations are needed for a divorce case.

Let’s explore this topic a bit further.

What Are Business Valuations?

Business valuations are the process of determining the economic value of a business or company. It is a complex process that involves analyzing the financial records of the company, its assets, liabilities, market competition, and other relevant factors. The value of a business includes various factors, including, but not limited to the following:

  • Profitability
  • Growth potential
  • Future earnings prospects
  • Market competition
  • Industry trends
  • Capital structure
  • Market value of assets
  • Company management

A jointly-owned business is considered to be an asset in divorce cases and is subject to division between the divorcing spouses. This can often be challenging because each spouse may have differing options about the value of the business, and some of these may be difficult to quantify objectively. As a result, disputes and conflicts are common.

Attorney Judy Burger works with respected professionals who are experienced business valuation experts to help overcome these challenges. They partner together to thoroughly analyze the financial records, assess assets and liabilities, and consider other relevant factors that impact the company’s value.

Methods of Business Valuations

Selecting the correct valuation method is one of the most critical factors in business valuations. Several valuation methods are available. Choosing the best method depends on the type of business, its size, and other relevant factors. Judy Burger and her team of experts choose the most appropriate method for valuing the business.

There are over a dozen different business valuation methods, but these are the most common:

Asset-based Approach

Also called the book value method, this valuation method is based on the value of the company’s assets, including its tangible and intangible assets. The expert will consider the value of the company’s assets, such as its inventory, property, and equipment, and subtract its liabilities to arrive at the net asset value of the business.

Income-based Approach

This valuation method is based on the income generated by the business. The expert will assess the company’s historical and projected earnings and apply an appropriate capitalization rate or discount rate to arrive at the present value of the business.

Market-based Approach

This valuation method is based on the market value of similar businesses. The expert will analyze the sales of comparable businesses and arrive at a fair market value for the business being valued.

Times Revenue Method

The times revenue valuation method uses a multiplier dependent on the industry and economic environment of the business. It is applied to a stream of revenues generated over a certain period of time.

Get Help with Business Valuations and Property Division in a CA Divorce

Establishing the correct value of a business in a divorce case can be a challenging process, so it requires skills and expertise. Certified Family Law Specialist Judy Burger works with experienced valuation experts to ensure a fair and accurate valuation of your business. She is tenacious regarding fairness and preserving your rights throughout the divorce and property division journey.

Contact The Law Offices of Judy L. Burger for more information and to schedule a consultation.

Your Top 10 FAQs Answered About Family Law in California
California Divorce, Child Custody, Child Support, Domestic Violence, Property Division

Your Top 10 FAQs Answered About Family Law in California

Family law deals with issues like divorce, child custody, child support, alimony, and property division. If you are going through a family law issue in California, you likely have many questions about the process and your rights. Certified Family Law Specialist Judy L. Burger answers the top ten questions we’re asked at our California practice about Family Law matters.

Of course, we can only provide the barest facts in an article. More complete explanations and answers to other questions are available in a complimentary consultation. Contact The Law Offices of Judy L. Burger to schedule your consultation.

Top 10 Family Law FAQs

Review these common questions clients routinely ask Attorney Judy Burger during initial consultations at her offices.

1. What is the process for getting a divorce in California?

To get a divorce in California, you must file a petition for dissolution of marriage with the court. You will need to serve your spouse with the petition and wait for their response. If you and your spouse cannot reach an agreement on all issues, such as child custody and property division, the court will schedule a trial to decide these issues for you.

2. How is child custody determined in California?

California courts determine child custody based on the best interests of the child. The court will consider factors such as the child’s age, health, and relationship with each parent. Generally, the court prefers frequent and continuous contact with both parents as long as it is in the child’s best interests.

3. How is child support determined in California?

California law provides guidelines for determining child support. The guidelines take into account the net disposable income of each parent and the amount of time each parent spends with the child. Other factors, such as the child’s needs and the standard of living before the divorce, may also be considered.

4. What is spousal support in California?

Spousal support, also known as alimony, is financial support paid from one spouse to the other after a divorce. Spousal support can be temporary or permanent, depending on the circumstances of the case.

5. How is spousal support determined in California?

California law requires the court to consider various factors when determining spousal support, including the length of the marriage, the standard of living before the divorce, and the age and health of each spouse. The court has discretion in determining the amount and duration of spousal support.

6. How is property divided in a California divorce?

California is a community property state, which means that property acquired during the marriage is generally divided equally between the spouses. However, there are exceptions to this rule, and the court may consider factors such as the length of the marriage and the economic circumstances of each spouse.

7. Can I get a restraining order in a family law case?

Yes, if you are a victim of domestic violence or harassment, you can obtain a restraining order to protect yourself and your children. The court may issue a temporary restraining order, followed by a hearing to determine whether a permanent restraining order is necessary.

8. Can I modify a child custody or support order?

Yes, if there has been a significant change in circumstances, such as a job loss or relocation, you can petition the court to modify a child custody or support order. The court will consider the child’s best interests when deciding.

9. What is mediation in a family law case?

Mediation is a process in which a neutral third party helps the parties in a family law case reach a mutually acceptable agreement. It can be voluntary or court-ordered and can be a cost-effective alternative to litigation.

10. Do I need a lawyer for a family law case in California?

While you are not required to have a lawyer for a family law case in California, it is highly recommended. Family law cases can be complex and emotional, and having a knowledgeable and experienced lawyer can help protect your rights and interests.

Seasoned Family Law Representation in California

Family law issues in California can be challenging and emotional, but understanding your rights and the legal process can help alleviate some of the stress. If you have questions about a family law issue in California, contact The Law Offices of Judy L. Burger, with eight offices across the state to serve you.

 

Overcoming Common Property Division Obstacles During a Divorce
California Divorce, Property Division, Property Division

Overcoming Common Property Division Obstacles During a Divorce

A property division can be fraught with obstacles during a divorce. Partners can accumulate assets of significant value over the years, and dividing them equally is virtually impossible. California Certified Family Law Specialist Judy L. Burger has extensive experience helping divorcing couples divide their property equitably and with the least rancor.

She shares the benefit of her experience in these tips for overcoming common property division obstacles during a divorce.

Common Obstacles to Dividing Property in a Divorce

Divorce can be difficult enough, but adding complex asset divisions into the mix often stretches tempers and emotions to the breaking point. Such divisions are never easy because they involve more than easily sectioned assets. Some of the most common obstacles to dividing property in a divorce include:

  • Family or Jointly-Owned Businesses – Determining who keeps the business, how it is divided, or other related questions is often complex.
  • Common Property—The home and other common property are often a serious point of contention in divorce property divisions.
  • Sentimental Property – A favorite book collection or family heirloom can cause negotiations to reach an impasse.
  • Digital Assets – Music collections and even the right to use online consumer awards can cause a breakdown in property division negotiations.
  • Retirement Benefits—Joint investments and retirement accounts can be real sticking points when determining an equitable property division.
  • Marital Debts – Couples can disagree more about debts than assets, and creating an arrangement to cover debts can be the hardest aspect of a property division.
  • Small Children – Younger children and custody considerations add several layers of additional concerns when dividing assets and marital properties.

Tips for a Smoother Property Division During Divorce

How can you help the property division process go much smoother? Follow these tips:

Don’t Be In a Hurry

Property divisions take time, and more complex assets and issues will require even more. Resolve to be patient and allow the process to play out. Critical factors, such as business valuations, asset valuations, and other processes, require time to be completed. Trust Attorney Judy L. Burger to work diligently with the best resources and leading experts to get the facts you need before serious decisions can be made.

Start With Short-Term Solutions

Begin by keeping things on an even keel. Make sure both households stay afloat for several months. Keep the rent, mortgages, car payments, and other bills current while everything else is being figured out. Focus on caring for yourself and your family, especially if children are involved. Seek amicable arrangements to keep life going steady for a while.

Focus on Needs and Interests, Not Positions

Avoid starting off with solid pronouncements like “I demand the house and the children every weekend.” Focus instead on your needs and interests and those of your family. What does everyone need to live on? How can you maintain a good relationship with the children? How will their needs best be met?

Get Seasoned Legal Guidance

Negotiating the minefields of divorce and property divisions without a seasoned family law attorney is like braving uncharted shoals hidden by large waves – you’re asking for disaster. A Certified Family Law Specialist like Judy Burger has the recognized expertise for navigating complicated divorce negotiations and property divisions.

She can guide the negotiations and offer strategic counsel while representing your interests and those of your children. An experienced third party like her can prevent serious misunderstandings, emotional arguments, and other detriments to a favorable outcome.

CA Divorce & Property Division Guidance

Troublesome relations and complex asset divisions are no problem for Attorney Judy Burger. She has successfully guided numerous complex divorces and property divisions so families can move forward. Contact The Law Offices of Judy L. Burger in California for legal representation, mediation, negotiation, and litigation concerning divorce and complex property divisions.

Jointly-Owned Businesses and Divorce
California Divorce, Property Division

Jointly-Owned Businesses and Divorce

When a couple decides to end their marriage, one of the most complex issues that they may face is the division of property. This can be especially difficult when the couple owns a business together. Jointly-owned businesses in California add another layer of complexity to the divorce process. What are your options for keeping or dividing the business? How does California law impact these decisions?

Certified Family Law Specialist Judy L. Burger discusses the specific considerations that need to be taken into account during a divorce involving a jointly-owned business.

Community Property Laws in California

California is a community property state, which means that any assets acquired during the marriage are presumed community property and if found to be community property, must be divided equally between the spouses in the event of a divorce. This includes any businesses that the couple owns jointly. In California, the ownership of a business is determined by both the legal and economic interests of each party.

Legal Interest vs. Economic Interest

Legal interest refers to the ownership interest that is reflected in the legal documents of the business. Economic interest refers to the actual value of the business. In some cases, these interests may not be equal. For example, one spouse may have a greater legal interest in the business. Still, the other spouse may have contributed more to the business and may have a greater economic interest.

Valuing Jointly-Owned Businesses

In order to divide the business equally, it is important to determine the value of the business accurately. This can be a complex process and may require the assistance of a business appraiser or accountant. The appraiser will take into account the assets and liabilities of the business, as well as any future earnings potential.

Options for Dividing the Business

Once the value of jointly-owned businesses has been determined, there are several options for dividing it. One spouse may buy out the other spouse’s interest in the business. This can be done by paying the other spouse their share of the business in cash or by exchanging other assets of equal value. Another option is for the spouses to continue to co-own the business. This can be a difficult option, as it requires the spouses to continue to work together, despite the end of their marriage.

Protecting the Business

In some cases, it may be possible to protect the business from being divided during a divorce. This can be done through a prenuptial or postnuptial agreement that outlines how the business will be treated in the event of a divorce. It is important to consult with an experienced Family Law Attorney like Judy Burger to ensure that any agreements are legally enforceable.

Get Help from a Seasoned CA Family Law Attorney

Divorce can be a difficult and emotional process, especially when it involves a jointly-owned business. It is important to work with a seasoned family law attorney who can help you navigate the complexities of dividing a business during a divorce. Ending a marriage and severing a business relationship at the same time requires keen wisdom in human relationships as well as an encyclopedic knowledge of the law.

Judy Burger is a Certified Family Law Specialist who can guide you through the rocky shoals of divorce and help you with property division concerns over a jointly-owned business. She has solid working relationships with various professionals who can help her protect your interests and ensure that your rights are protected. These accountants, appraisers, business attorneys, real estate brokers, and other professionals work with her to help you get the most from any business division of property due to divorce.

Contact The Law Offices of Judy L. Burger today to learn more and schedule a consultation.

 

What Happens If One Party Wants to Keep the Family Residence?
California Divorce, Mediation, Property Division, Property Division

What Happens If One Party Wants to Keep the Family Residence?

Separation and divorce present numerous challenges to both parties. One of the most complex and emotional issues is dividing property. When both spouses have an attachment to the family home, this debate can become heated and fractional. What if one party wants to keep the family residence after a divorce? Or what if both parties wish to keep it and live in it?

California Family Law Specialist Judy L. Burger is well-experienced in Property Division matters relating to divorce. She can work with various specialists to determine the best course of action and your legal rights. Her team can also represent you in property division hearings and other divorce proceedings in the Family Courts when a family residence is in question.

California Property Division Law

California law follows the doctrine of community property in that any debts or assets owned by a married couple are jointly owned (community property). Therefore, each spouse has an equal interest. In a divorce, community property should then be divided 50/50 between the spouses. However, the family home may or may not be considered community property under state law.

The home may be considered community property if:

  • The home was purchased with earnings from both spouses.
  • Both spouses obtained a mortgage for the home while married.
  • Both spouses contributed earnings to pay the mortgage and/or upkeep of the home.

The family residence may be considered separate property if:

  • One spouse already owned the home before marriage.
  • The home was gifted to one spouse before or during the marriage.
  • Only one spouse provided for the mortgage or upkeep of the home.

However, separate and community property can easily become commingled in a marriage. Over time, a married couple can acquire a community interest in the home through numerous actions and investments.

Conversely, other parties can acquire an interest in the home as well. Any mortgage lender you owe will hold an interest. If you jointly own the home with a third party, such as a family home passed down to one spouse but in another person’s name, this person has an interest and legal rights. You may have also used your home as collateral for a business loan. If so, the business in question may have an interest and rights as well.

So, Who Gets the House?

The question of who gets the family residence in a divorce is never simple. As you see above, numerous factors and scenarios can come into play. Separated or divorcing spouses have some options for settling the question:

  • Agreeing on Separate Property: The couple agrees that the home is the separate property of one spouse. This must be verified by a court order to become official.
  • Negotiating a Living Agreement: The couple can agree on who maintains ownership and lives in the house. However, any joint agreement you reach must be ordered by the court to make it official.
  • Spousal Buyout: One spouse agrees to buy out the community property interest of the other spouse. An independent appraisal is necessary and the court must agree to this arrangement.

If the couple cannot agree, the Family Court will turn to California’s property division laws to make orders. In the case of separate property, the home belongs to the spouse who owns it. When the home is declared community property, the court may order the following solutions:

  • Sell the Home: The family home is sold and the proceeds are divided equally among the parties holding an interest or according to the courts division (if any separate property interest is determined).
  • Buyout: One spouse is allowed to purchase the other’s community property interest and becomes the sole owner of the home.
  • Deferred Sale: If a couple has minor children at home, the couple may remain joint owners but allow the custodial parent to live in the home with the children. This can often make a divorce easier on younger children. After a specified time, the home is sold and the proceeds are divided.

Get Seasoned Representation for CA Property Division

Numerous factors can arise in any property division during a divorce, so you need seasoned legal representation and counsel to protect your interests. Family Law Attorney Judy L. Burger is a skilled negotiator and vigorous defender of your rights. She has the knowledge and experience in family law to handle difficult or complex property settlements on your behalf.

Contact one of our offices throughout California today to get help with difficult property division questions in a divorce.

Can In-law Gifts and Support be Considered During my California Divorce?
California Divorce

Can In-law Gifts and Support be Considered During my California Divorce?

Divorce can be devastating on multiple levels—especially financially. Getting through the process and back on your feet can take time. In this situation, it’s not uncommon for family members to help out by providing extra funds. Depending on the circumstances, someone’s family support could be a temporary measure or ongoing. Additionally, some family “gifts” operate more like recurring income. If you or your ex are getting supplemental financial assistance from family, you will want to know: Can in-law gifts and support be considered during my California divorce? Continue reading →