The Law Office of Kathy G Neumann


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Phone: 818-292-8658
Fax: 818-292-8660

kathy@kathyneumannlaw.com

Westlake Village

2625 Townsgate Rd, Suite 330
Westlake Village, CA 91361

Sherman Oaks

(Comerica Bank Building
in the Galleria)
15303 Ventura Blvd, 9th Floor
Sherman Oaks, CA 91403

Division of Property, Assets, and Debts

The division of property and debts can arise in actions for divorce and legal separation. The Court can also include orders for exclusive use and possession of property, and for payment of certain debts, in domestic violence restraining orders. Rights and obligations relating to property and debts can be determined prior to marriage in a prenuptial agreement.

In California, the general rule is that COMMUNITY PROPERTY is all property acquired between the date of marriage and the date of separation, and any income or accumulation that comes from that property. It also includes debts that are incurred during marriage. In most cases, community property assets and debts are divided equally between the spouses based on the values of those assets and debts.

In California, the general rule is that SEPARATE PROPERTY is all property acquired before the date of marriage or after the date of separation, and any income or accumulation that comes from that property. It also includes debts that are incurred before marriage or after the date of separation. In most cases, separate property assets and debts are confirmed to the spouse who owns the separate property asset or owes the debt.

EXCEPTIONS TO THE GENERAL RULES:

There are many exceptions to the general rules about Community Property and Separate Property. For example, money or property acquired by inheritance, gift, or for personal injuries, even though it is received during marriage, is considered to be the separate property of the spouse who receives it.

Another example of an exception to the general rules about Community Property and Separate Property is when one spouse uses their separate property funds to acquire a community property asset, or makes payments on that asset with separate property funds. Under certain circumstances, that spouse may be entitled to reimbursement for their contributions. A twist on this exception is when community property funds are used to acquire or improve a spouse’s separate property asset. In that case, the community may acquire an ownership interest in the separate property asset of one spouse.

There are many grounds on which one spouse may claim a right to reimbursement, or a credit against the other spouse’s portion of the property division. For example, one spouse may have exclusive possession and use of a community property residence. The other spouse may be entitled to one-half of the reasonable rental value of that property for the period their spouse had exclusive possession and use of that property.

VALUATIONS AND OWNERSHIP INTERESTS:

Valuations and ownership interests in a business, retirement and benefit accounts, stock options, investments, as well as in projects such as scripts, films, residuals, books, intellectual property, inventions, patents, etc., can be very complex. Often, spouses will have very different ideas about who has ownership interests, and what each spouse is entitled to, despite the name on the ownership documents, or time the asset was acquired. In some cases, experts are needed to help the parties and the courts, to understand the financial aspects of their lives.

Property division is a very complex area of law. You need a strong, knowledgeable, and experienced attorney to ensure that your interests are represented. We will make sure you receive your fair share. Call the Law Office of Kathy G. Neumann today to make sure your rights are protected.

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