Property Division

Whatever has been acquired during the marriage is presumed to be community property, but that is definitely not always the case. Before you presume that you will be getting half of all the assets you and your spouse own, consult with a family law attorney. This is crucial information for your post-divorce financial planning.

Even if an asset is community property, there are often reimbursements given to a spouse who has contributed to the purchase of the asset. For example, a home purchased during the marriage is, in almost all cases, community property; however:

1) From where did you obtain the money for the down-payment when you purchased the home?

2) Were the down-payment funds from an inheritance received by one spouse, or from the equity in a home one spouse owned prior to marriage?

Under these circumstances, that spouse would be entitled to reimbursement of the funds used for the down-payment. If the amount of that down-payment credited to one spouse exceeds the amount of equity in your current home, the other spouse may not be entitled to any of the equity in the division of that asset. It is crucial that you understand how your property is likely to be divided when you start the process of divorce.