California is a community property state, which means that when assets and debts are divided between spouses during a divorce, it’s done differently than in other states. Men often misread these specific rules which causes them to make mistakes throughout the divorce that can be detrimental long-term.
Community property is generally any assets that have been acquired during the marriage and is therefore entitled to be split between both spouses, no matter who earned it at the time. As far as protecting your finances is concerned, it’s essential that men understand the community property laws in California to exit the marriage with as little damage as possible.
What Community Property Means in California
Under California law, virtually all income and assets that are earned within the marriage are deemed community property. This regularly includes wages, real estate, vehicles, retirement funds, investments, and sometimes profits made from businesses. As a general rule of thumb, these are divided equally, and not based on need.
Something men fail to realize a lot of the time is that just because an account or asset is written in their name doesn’t mean that the property itself is separate. Since you were within the scope of the marriage when it was acquired, it will be considered community property.
What Counts as Separate Property?
Examples of separate property include inheritance dedicated to one spouse, any assets/wealth owned or acquired before the marriage, properties acquired after the date of separation, and certain personal injury settlements. Men should be aware that separate property must be proven for it to fall within that category, which is why the more documentation you have pertaining to what’s rightfully yours, the better.
Retirement Accounts and Investments
Retirement accounts and investments are a highlighted concern for men during a divorce. Common retirement accounts include 401(k)s, pensions, IRAs, and deferred compensation plans. These are all divided during a divorce and are therefore considered community property.
All money earned during the marriage that was also put into investment accounts and successfully grew is subject to being divided as well. It’s common for men especially to be surprised by retirement accounts being community property which only furthers the importance of consulting with your attorney to be sure your assets are being valued accurately.
Debts
Debts are also divided in addition to assets. Things like credit balances, loans, and any other forms of debt that built up throughout the marriage are deemed community property. Even if debt is only in one spouse’s name, the rule still applies. The way to get around having debt being split evenly is to negotiate properly, which is where having a skilled legal counsel fits in. Make sure you utilize your attorney as much as you can to make the divided debt result in your favor.
Mistakes Made by Men Under Community Property Laws
The legal process surrounding community property laws can be sticky. That’s why men need to be fully aware of how to strategically approach their divorce the right way. Things that are often missed usually relate to debts being thought of as separate property when it isn’t, failing to actually document separate property, and having the mindset of “what’s mine is mine.”
There is a plethora of elements to remember, and men can fall through the cracks sometimes, which can really negatively impact their case.
Importance of a Legal Team
As you can see, community property is just one element to a divorce. There are so many factors that aren’t even considered by men when they’re going through it, especially due to the emotional toll the entire process can cause for them. This is why having an experienced legal team to represent you as best as possible is so important. Men’s Legal Center in San Diego is here to do just that. Make sure you contact them for your free case review as soon as you can so that you can get the representation that you deserve.