One of the biggest issues in divorce that tends to affect the parties’ relative financial positions going forward is the identification and division of marital property. Determining what is separate rather than community property can become quite complicated. Consider that in many cases, as people are getting married later in life, each party may bring to the marriage an assortment of separate assets and debts. Upon marriage, the question of what happens to each person’s separate property is not necessarily clear. Much depends on the explicit actions and declarations of the parties. If you are considering a divorce, it is extremely important that you assess the state of your marital and separate property as early in the process as possible. In order to effectively address these issues, you are encouraged to contact a local San Diego family law attorney.
In divorce proceedings, parties often are unable to come to an agreement as to the character of certain assets and debts. When this occurs, courts have the authority to step in to identify and divide the marital property. In a recent California divorce case, the court of appeals was asked to decide whether the husband had “transmuted” his separate property to community property, for purposes of asset and debt distribution. There are state laws that address this very situation and must be analyzed to determine the appropriate outcome in each case.