San Diego Lawyers Handling Division of Marital Assets
What Does It Mean to Divide Marital Assets in California?
Division of marital assets means how property, money, and debts are divided between spouses during a divorce.
Typically, this can include things like:
- The family home
- Bank accounts
- Retirement accounts
- Investment accounts
- Cars
- Furniture / personal property
- Businesses or professional practices
- Stock options / bonuses
- Debts (credit cards, loans, tax debt, etc.)
What Does an Attorney Do To Divide Assets?
An attorney who helps you prepare for, navigate, and protect your interests during mediation—without necessarily turning the case into a courtroom war.
- Property Division. Generally speaking, all property that you and your spouse acquire during the marriage while “domiciled” (residing for most purposes) in California is community property. This means that all earnings, assets, and debts during a marriage are subject to equal division between the spouses upon divorce.
- Dividing Business. Businesses can pose many difficult questions regarding whether the business is community or separate property; what options are available for dividing the asset, and how to value a business. For an ongoing business, “goodwill” may need to be divided, which can be very difficult to value.
Frequently Asked Questions
-
What about property value division?
Generally speaking, all property that you and your spouse acquire during the marriage while “domiciled” (residing for most purposes) in California is community property. This means that all earnings, assets, and debts during a marriage are subject to equal division between the spouses upon divorce.
An exception is separate property, which includes property that a spouse inherited and property owned by the spouse before the marriage. However, separate property may have been changed, or “transmuted,” into community property and vice versa. If separate and community property were mixed, or “commingled,” this property might belong to the community.
If you and your spouse were domiciled in another state and moved to California, property acquired in another state might be treated as community property.
Under California’s marital property system, complex legal and factual issues often arise, especially if you and your spouse have substantial assets or a professional degree. The security of your financial well-being may depend in part on how property is characterized, and you can be confident in our abilities to advance your best interest in these critical determinations.
-
What about business or partnership division?
Businesses can pose many difficult questions regarding whether the business is community or separate property; what options are available for dividing the asset; and of particular importance, how to value a business. For an ongoing business, “goodwill” may need to be divided, which is an intangible asset that can be very difficult to value.
Also, if one spouse is a member of a partnership with third persons, the non-partner spouse may have an interest in the partner-spouse’s share of the partnership, creating valuation issues.
In sum, there are many ways to divide a business as well as different valuation techniques. Our San Diego divorce attorneys identify your rights and take the necessary measures to protect your financial interests.
-
What about division of stocks?
The division of stock often raises special considerations, as a court frequently considers whether to divide the stock equally, or award the stock to one spouse and compensate the other. As always, our lawyers carefully evaluate the alternatives to safeguard your interests.
It is also important to note that after separating, spouses must make certain disclosures regarding stock holdings. Minella Law Group’s lawyers act to ensure that disclosure duties are abided by so that you are not disadvantaged.
-
What about employment related benefits after divorce?
Pension or Retirement Benefits
There are many deferred compensation and retirement benefit plans that are offered to executives and employees. Even though these might not be received until after divorce, a portion of these assets may belong to the community. Our family lawyers take the proper steps to protect your interest in a pension or retirement plan, and if appropriate, secure the interest by obtaining a qualified domestic relations orders on the asset.
A Minella Law Group attorney also assess valuation issues to ensure your rights are not diminished, and if you wish to terminate your marital status before other issues are resolved, we’ll take the appropriate actions to prevent losses to any right you may have to pension benefits.
Stock Options
Stock options may be a mixture of community property and separate property. Several factors are considered in determining the stock option’s character, as well as in valuing the option. In asserting your rights, we’ll emphasize those factors in your favor through skilled representation in and out of court in San Diego.
-
What if there are tax issues with the divorce?
A divorce has many tax effects, including the tax effects of spousal and child support, the equal and unequal divisions of property, of a sale or exchange of a principal residence, and the deductibility of attorney’s fees.
Particularly in a high asset divorce, tax considerations must be taken into account early on. Minella Law Group’s attorneys will always place your financial interests as our priority, and we’ll ensure that the tax effects are weighed.
-
Our Clients Say It Best -
About Minella Law Group
