Property Division

San Diego Property Division Attorney

California Community Asset Lawyer

The property division aspect of divorce is essentially a 3-step process. Each asset or liability is characterized (either separate or community), valued and distributed. California law provides for an equal distribution of the community assets. Getting to that point however is full of twists and turns.

Separate property is usually defined as property acquired prior to marriage, after separation or during marriage if by gift or inheritance (bequest, devise or descent). Absent an agreement to the contrary (e.g. see our prenuptial page), community property is property acquired during marriage and not from a separate property source.

Client Testimonial:   Mr. Beeson, I'd like to take this opportunity to commend the excellent work you and your firm performed during my divorce, in handling my issues as a true professional and expert from the very beginning. You are not only personable and considerate but you also truly know your field of expertise. Whenever I had a question, or concern, you were always there. I would not hesitate to do business with your firm in the future. I highly recommend the Law firm of David P. Beeson and Associates and if you are looking for integrity and professionalism, I suggest you give them a call.  - Mark

Initially, it is important to obtain as much of the financial information about your marriage as possible. Important sources of information are bank statements, checking account ledgers, credit card statements, loan applications, computer/electronic bookkeeping programs, investment records, deeds to real property, spreadsheets, property management statements and 3-5 years of past income tax returns with the supporting documentation.

Additionally, information regarding the amount and source of all the current income of both of the parties is important. For example, pay stubs reflecting year to date income will provide not only information on income and bonuses but also accrued vacation time, sick leave and employment benefits such as health insurance, pensions and 401(k) or similar type programs.

In addition, the source of the funds used to pay for assets can be important information. Therefore, tracing the history of each asset is a task that needs to be accomplished. For example, the down payment for property may have been savings earned prior to marriage. Thus the property is of mixed character (i.e. partially community and partially separate). The person making that down payment may be entitled to be reimbursed for the down payment.

In our complicated lives, our financial decisions also tend to be complicated. It is not uncommon to borrow from a separate property source and invest in community property. How title is taken, the source of the funds used for purchase or improvement and how the property is treated during marriage is important information directly affecting one's property interest. The history of the asset can dictate the distribution at time of divorce.

We are often asked about how divorce interplays with taxes. To be effective, you should have an accountant working with you during the divorce. A few basic rules to keep in mind are:

1) Your marital status on December 31 dictates you tax filing status for that year (see our Divorce Topic Heading).

2) Property division incident to divorce is a non-taxable event.

3) Early retirement (401k, IRA etc) and pension withdrawals are subject to penalties and taxation

4) Pensions and retirement benefits can be divided in non-taxable, penalty free orders (commonly known as QDROs i.e. Qualified Domestic Relations Orders)

5) Spousal Support paid pursuant to a court order may be deductible by the payor and income to the payee (see our Support Heading)

6) Child Support is not deductible by the payor nor is it income to the payee (see our Support Heading)

7) If you file a joint tax return, you are jointly and severally liable for that return.

The decisions you make in your divorce have repercussions for years. Make the right decision now and contact us for an appointment.

For a free initial consultation with David P. Beeson & Associates, call 619-618-2983 or 866-706-2015, or contact us online. Se habla español.