Divorce can be a scary rollercoaster of emotions, and things can get even more complicated when dividing property. Understanding the difference between what belongs to you alone and what you share with your spouse is crucial.
In California, the terms “separate property” and “community property” come into play, and knowing which is which can make a difference in your divorce process. Read on below to understand these concepts better.
Separate or community property?
In simple terms, separate property refers to what each spouse individually owned before the marriage or acquired after separating, including any gifts or inheritance received. Meanwhile, community property includes anything earned or debts incurred during the marriage.
Knowing the date of your marriage and separation is essential for determining which items fall under each category. While the marriage date is usually straightforward, the date of separation can be more complex.
It typically involves a clear indication, either through actions or words, that one spouse wants to end the marriage, and their actions reflect that decision. For some, this could be when they moved out or mutually agreed to divorce. From that separation day forward, earnings and debts generally revert to being separate property.
Examples of community property are earnings or income gained during the marriage. Purchases made with marital earnings and debts incurred while married fall under the same category. These are all subject to division after the divorce.
Meanwhile, any gifts or inheritance one spouse receives during the marriage remain separate property. If you receive an inheritance, you will remain the sole owner after the marriage ends.
The importance of legal knowledge
Understanding how courts divide assets after divorce helps couples who are concerned about their wealth. By being informed, you can ensure you get what belongs to you during the division of property process.
