Dividing complex assets during divorce in California

© 2015 Burch Coulston & Shepard, LLP. All rights reserved. Design and editorial services by FindLaw, part of Thomson Reuters.

P R E S E N T E D B Y

BURCH, COULSTON & SHEPARD, LLPE XC L U S I V E LY P R AC T I C I N G FA M I LY L AW

At Burch, Coulston & Shepard, LLP, we have a lot of experience working with people who are going through

divorce. We know that deciding who gets what in a divorce can be one of the most complicated and challenging parts of an already difficult process.

We also know that learning what to expect from the process can be

helpful, so we have prepared this presentation to share our knowledge with you. We hope you find it helpful and informative.

Every state has its own laws that determine how property

is divided when a couple decides to divorce. California

has what is called a community property law. HIS

COMMUNITY

HERS

In a nutshell, California’s community property law means that a couple’s assets will typically be divided

equally if they decide to divorce.  

As a general rule of thumb, assets acquired prior to the marriage are kept separate, while those earned or

acquired by either spouse during the marriage are subject to division.

  However, it is rarely as simple as it sounds — especially

when the assets involved are complex.

One area in which complexity can arise is in the process of classifying assets as either separate or shared.

Although the law presumes that any assets obtained during the marriage are shared, this presumption can be

overcome by a variety of circumstances.  

In other words, assets may be classified as shared even if they were obtained prior to marriage, or classified as

separate even if they were obtained during the marriage.

Dividing property during divorce can also become more complicated due to the types of property involved, particularly if they are complex assets such as:  

Investment assets Business holdings Family heirlooms Fine art Retirement accounts Real estate

%

The existence of a prenuptial agreement is another factor that can affect the property division

process. Sometimes a prenuptial agreement may simplify the process, while other times it can make it

more complicated. This depends on the specific terms of the agreement and whether it is considered

legally enforceable.

The property division process can become even more complicated and difficult if one spouse tries to conceal assets from the other. This is not only unethical, it is illegal. However, it is also more common than many people realize.

  When asset concealment is suspected, it may be

necessary to enlist help from forensic accountants, financial analysts and other

professionals with special training in detecting and locating hidden assets.

For a more detailed discussion of the topics outlined in this presentation, as well as other important issues relating to

property division during divorce in California, we invite you to

read our free white paper: Complex Division: Splitting

assets in a California divorce.

S H A R E T H E W H I T E P A P E R

© 2015 Burch, Coulston & Shepard, LLP. All rights reserved. Design and editorial services by FindLaw, part of Thomson Reuters.