The divorce process can potentially have a negative impact on the finances of the divorcing spouses which is why it is important to understand how the property division process works. Property division is an important component of any divorce process which is why it is important for spouses to protect their interests whether divorcing in the Pleasanton area or otherwise. It is also helpful to note that California is a community property state and that assets are divided in half during divorce.
There are several stages in the property division process including characterizing property to determine which assets are considered community property and which assets are considered separate property. Community property, or marital property, is subject to division and complexities can arise associated with property acquired before marriage, inheritances, legal settlements and retirement accounts. After assets are characterized, they need to be valued. Financial experts and appraisal experts can help in the valuation process prior to division.
The next step in the process is the division of assets and debts which can be complicated. Though property division is conducted on a 50/50 basis in California, a property division agreement may require aspects of creativity because all of the couple’s assets may not be subject to a straightforward division in half. It is important for divorcing spouses to have an understanding of their financial situation and needs and the value of their assets which can inform the property division process.
When divorcing couples understand the property division process, as well as their needs and goals for the process, it can help the process run more smoothly. The family law process is available to help guide couples through the challenges they face during divorce, including concerns associated with property division.