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Assets, debts and a knowledgeable approach to property division

On Behalf of | Dec 22, 2021 | Firm News |

If you are facing the end of your marriage, the next hurdle to cross will be the property division phase of your divorce.

The objective here is for the two of you to divide your property and debt in as fair a manner as possible. If you can work together, property division will be an easier process to navigate.

Dividing community property

California is a community property state, which means that in a divorce, the parties should divide their assets and debts equally. In reality, the goal is a fair distribution of both assets and debts. This does not necessarily mean a 50-50 split.

Achieving equal net share

You can use the value of one asset to balance out the value of another. For instance, if your spouse is taking the marital home in which there is equity, he or she might also take all the credit card debt to resolve. In property division, the goal is to add up the value of the assets and subtract the amount of the debt. The result is the net value of your community estate for you and your spouse to divide.

Avoiding mistakes

The division of certain assets is a complicated affair. For example, dividing your spouse’s pension will require a qualified domestic relations order or QDRO. The QDRO must have the approval of both the benefits provider and the judge to ensure that you receive future benefits. To avoid potentially harmful errors, legal guidance is essential in all property division matters and especially helpful when dividing this kind of complex asset.