How Does Divorce Affect Property Ownership?

When a couple begins their divorce journey, it is necessary to consider how property ownership will be handled in the divorce agreement early on in the process.

In California litigated court divorces, the court system will decide for you if you and your partner cannot decide on how your property should be handled. The division may not be divided equally – that’s a sizeable risk to take.

In a collaborative divorce process in California, there are many options couples can agree to in regard to property ownership and asset division.

When you and your spouse begin to determine how your properties will be divided, there are many things to consider:

• Was the property purchased while married?
• Is it an income-generating property, like a rental or other home investment property?
• Was it acquired before marriage?
• Who will be living in the home after the divorce is finalized?
• Will you be selling the property?
• Does either client want to be bought out of the property?

California is a community property state – meaning the property you and your spouse acquired after marriage is to be divided equitably.

Personal property would be considered any property you owned before marrying – this property type is not required to be divided in the state of California.

When you utilize the collaborative divorce process, you and your partner can explore other amicable options in dividing your property. Both of you can work with a neutral financial professional who will review your financial landscape unbiasedly and develop a property division plan that is agreeable to both of you.

Our team at Family Divorce Solutions is a group of well-respected, experienced and trained attorneys, mental health professionals, financial professionals and child specialists who work as a team to reach a complete and satisfactory resolution for everyone involved.

Contact us today to see how our neutral financial specialists can advise you about your property ownership concerns when using the collaborative divorce model.

Note: This information is general in nature and should not be construed as legal/financial/tax/or mental health advice. You should work with your attorney, financial, mental health or tax professional to determine what will work best for your situation.