Who Keeps the House? Asset Division in California
One of the biggest misconceptions we see at Santa Clarita Divorce Lawyer is regarding property division. Many clients assume that because they earned the money, the assets bought with that money are theirs.
Community Property Explained
California is a Community Property state. Generally, this means that any asset acquired (or debt incurred) from the date of marriage to the date of separation is owned 50/50 by both spouses.
This includes:
- Real estate (even if only one name is on the deed, in many cases).
- Retirement accounts (401k, Pensions).
- Business interests started during the marriage.
- Credit card debt.
The Family Home
The house is often the largest asset. There are usually three ways to handle it:
- Sell it: The home is sold, the mortgage paid off, and the remaining proceeds are split.
- Buyout: One spouse keeps the house and "buys out" the other spouse's 50% share (often by refinancing).
- Deferred Sale: In rare cases involving young children, the court may allow the custodial parent to live in the home for a set period before selling.
Commingling of Assets
Things get complicated if you used "separate property" (money you had before marriage) to pay for a "community asset" (the mortgage). This is where forensic accounting becomes necessary to trace the funds and ensure you are reimbursed (known as a "Moore-Marsden" calculation).