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How are debts and assets divided in California?

In California, the legal theory of community property is recognized. This means that when a married couple goes through a divorce, the marital assets they share will be subject to a 50-50 split. This may sound simple in theory, but in reality, there are several considerations that should be made.

It is important to understand how debts and assets are treated in a California divorce. Planning ahead can be extremely beneficial for the financial outcome of your divorce.

Only marital assets and marital debts are subject to division

Not all assets and debts held by the married couple are subject to division. Only marital property will be divided. Marital property counts as any assets that were gained after the marriage took place, with the exception of gifts and inheritances. Property includes houses, cars, clothing, stocks, businesses and even patents.

How are marital assets divided?

Marital debts are divided in accordance with the legal theory of community property. This means that they will be subject to an equal split, regardless of the circumstances. In addition, assets will be subject to community property asset division in California, even if the state in which they were acquired does not recognize community property.

How are marital debts divided?

Marital debts are not divided according to community property, and they are divided equitably instead. This generally means that the debts will be attributed to the spouse that originally acquired them.

If you want your divorce to have a financially successful outcome, it is important that you understand the intricacies of the law. By taking action early, you will be in a powerful position.

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