Is California a Community Property State?
California follows community property distribution laws when a couple decides to divorce or go their separate ways after registering as a domestic partnership. The way in which your marital or shared property is distributed could become quite contentious, especially since community property laws require assets to be distributed equally upon separation. As the divorce process progresses, it is critical that you protect your rights.
With help from a highly experienced California divorce lawyer from Ratzer Dobis, you can protect yourself from being taken advantage of and gain a thorough insight into how the state’s community property laws could impact your divorce settlement. Contact our law office to request a confidential consultation today and learn more about how your divorce proceedings could be affected by the state’s marital property distribution laws.
Table of Contents
California Community Property Laws
Items That May Be Considered Community Property
What Property is Considered Separate Property in California?
What community property rights do unmarried cohabitating partners have?
What is the difference between community property and equitable distribution?
What is an omitted spouse and do they have community property rights?
What is the difference between community property and common law?
What is quasi-community property?
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California Community Property Laws
How your marital assets and property will be divided when you decide to end your marriage is often one of the most difficult factors to work through before you can finalize your divorce. In California, all marital property is deemed “community property”. This means both parties are entitled to their equal share of the assets, no matter which spouse acquired the assets or property in question.
You may be able to predetermine how certain marital assets or property are divided upon divorce if you and your spouse entered into a prenuptial agreement or drafted a postnuptial agreement after you got married. However, it is important to note that if your prenup or postnup included provisions that could be considered “unconscionable”, under Cal. Fam. Code § 1615, this agreement could be deemed null and void.
Items That May Be Considered Community Property
Virtually any property, assets, or debts that are brought into the marriage can be classified as community property. This might include:
- Real estate
- Retirement accounts
- Income
- Bank accounts
- Investment accounts
- Personal property, including collectibles
Each spouse owns 50% of all community property. You and your spouse may be able to work together to divide up assets any way you see fit as long as you both agreed to the arrangement.
It is important to note that in certain circumstances, community property can be converted to separate property, allowing one spouse to retain full ownership of the assets in question. We see this occur most often when couples own a home together and both spouses agree to convert the title to one spouse or one spouse buys out the other spouse’s share of the real estate property.
What Property is Considered Separate Property in California?
Any properties that were acquired before the marriage may be considered separate property. The property must remain separate throughout the course of the marriage for it to avoid community property classification. For example, if you received an inheritance but deposited the money into a joint bank account, the money would be considered community property as opposed to separate property.
However, if you keep the inheritance in a bank account in your name alone the property may continue to remain separate. When property is kept separate, the other spouse is not entitled to any portion of the property or assets per California Code, Family Code – FAM § 770.
Community Property FAQs
What community property rights do unmarried cohabitating partners have?
Unmarried cohabitating couples do not have community property, and therefore do not have any community property rights. However, if the couple enters a registered domestic partnership or officially gets married, any property or assets obtained going forward would be considered community property.
What is the difference between community property and equitable distribution?
The primary difference between community property and equitable distribution is how the distribution process is handled. In community property divorces, property and assets are divided 50/50. In equitable distribution divorces, property and assets are divided fairly or equitably. In equitable distribution states, marital property and assets must be divided fairly, which means judges can order separate property to be used to make the divorce settlement equitable.
What is an omitted spouse and do they have community property rights?
Also commonly known as “pretermitted spouses”, omitted spouses are those who were unintentionally left out of their deceased spouse’s trust or will. According to California’s intestacy laws, surviving spouses are still entitled to the decedent’s community property and separate property.
What is the difference between community property and common law?
A common law marriage is a type of marriage that occurs when spouses may have been cohabitating for a certain number of years but never officially got married. The state of California does not recognize common law marriage according to the California Secretary of State. Therefore, the state’s community property laws, which divide marital property 50/50 would not apply if a cohabiting couple that never formally wed decided to split up.
What is quasi-community property?
Quasi-community property is any property that one spouse obtained while living in another state that would have been deemed community property if they were living in the state of California per California Probate Code Section 66. This most frequently occurs in putative marriages, where at least one spouse has entered into the marriage in good faith but the marriage requirements have not actually been met.
Turn to Our Client-Focused California Divorce Law Firm for Help Today
Despite the fact that California is a community property state, you can still safeguard your rights and secure your fair share of the marital assets, and property, and protect yourself from your spouse’s debts. Understanding how community property laws work will be an essential element of the divorce process.
When you have concerns that your spouse will attempt to take advantage of you or trick you into accepting a settlement that is less than you deserve, do not risk it. Contact a compassionate and dedicated California divorce attorney with Ratzer Dobis to take action. Fill out our secured contact form or call us to schedule your confidential consultation as soon as today.