Division of marital assets means how property, money, and debts are divided between spouses during a divorce.
Typically, this can include things like:
Under California’s marital property system, complex legal and factual issues often arise, especially if you and your spouse have substantial assets or a professional degree. The security of your financial well-being may depend in part on how property is characterized, and you can be confident in our abilities to advance your best interest in these critical determinations.
An attorney who helps you prepare for, navigate, and protect your interests during mediation—without necessarily turning the case into a courtroom war.
Property Division
Generally speaking, all property that you and your spouse acquire during the marriage while “domiciled” (residing for most purposes) in California is community property. This means that all earnings, assets, and debts during a marriage are subject to equal division between the spouses upon divorce.
Dividing Business
Businesses can pose many difficult questions regarding whether the business is community or separate property; what options are available for dividing the asset, and how to value a business. For an ongoing business, “goodwill” may need to be divided, which can be very difficult to value.
We don’t just handle divorce—we strategically manage complex financial transitions for high-net-worth individuals. If your case involves millions in assets, business ownership, executive compensation, or real estate portfolios, the stakes are too high for anything less than elite legal strategy.
A collaborative law case is made up of four-way meetings in which the parties and their lawyers work together to resolve your divorce, property division, custody and support, and other related concerns, outside of the courtroom. Each attorney still represents his or her own client and their interests.
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In California, parties can change their property rights by contract. If you and your spouse entered into a premarital agreement, a court may find that there is no community property.
However, in certain circumstances, premarital agreement can be challenged. If the agreement is established to be against public policy, the entire agreement or provisions within it may be held invalid.
We’re committed to furthering your economic well-being, and in doing so we’ll carefully review your premarital agreement and pursue the best course of action.
We’re sure you have questions! This isn’t easy and the best outcome starts with knowledge. Here are the top questions we get asked:
Generally speaking, all property that you and your spouse acquire during the marriage while “domiciled” (residing for most purposes) in California is community property. This means that all earnings, assets, and debts during a marriage are subject to equal division between the spouses upon divorce.
An exception is separate property, which includes property that a spouse inherited and property owned by the spouse before the marriage. However, separate property may have been changed, or “transmuted,” into community property and vice versa. If separate and community property were mixed, or “commingled,” this property might belong to the community.
If you and your spouse were domiciled in another state and moved to California, property acquired in another state might be treated as community property.
Under California’s marital property system, complex legal and factual issues often arise, especially if you and your spouse have substantial assets or a professional degree. The security of your financial well-being may depend in part on how property is characterized, and you can be confident in our abilities to advance your best interest in these critical determinations.
Businesses can pose many difficult questions regarding whether the business is community or separate property; what options are available for dividing the asset; and of particular importance, how to value a business. For an ongoing business, “goodwill” may need to be divided, which is an intangible asset that can be very difficult to value.
Also, if one spouse is a member of a partnership with third persons, the non-partner spouse may have an interest in the partner-spouse’s share of the partnership, creating valuation issues.
In sum, there are many ways to divide a business as well as different valuation techniques. Our San Diego divorce attorneys identify your rights and take the necessary measures to protect your financial interests.
The division of stock often raises special considerations, as a court frequently considers whether to divide the stock equally, or award the stock to one spouse and compensate the other. As always, our lawyers carefully evaluate the alternatives to safeguard your interests.
It is also important to note that after separating, spouses must make certain disclosures regarding stock holdings. Minella Law Group’s lawyers act to ensure that disclosure duties are abided by so that you are not disadvantaged.
There are many deferred compensation and retirement benefit plans that are offered to executives and employees. Even though these might not be received until after divorce, a portion of these assets may belong to the community. Our family lawyers take the proper steps to protect your interest in a pension or retirement plan, and if appropriate, secure the interest by obtaining a qualified domestic relations orders on the asset.
A Minella Law Group attorney also assess valuation issues to ensure your rights are not diminished, and if you wish to terminate your marital status before other issues are resolved, we’ll take the appropriate actions to prevent losses to any right you may have to pension benefits.
Stock options may be a mixture of community property and separate property. Several factors are considered in determining the stock option’s character, as well as in valuing the option. In asserting your rights, we’ll emphasize those factors in your favor through skilled representation in and out of court in San Diego.
A divorce has many tax effects, including the tax effects of spousal and child support, the equal and unequal divisions of property, of a sale or exchange of a principal residence, and the deductibility of attorney’s fees.
Particularly in a high asset divorce, tax considerations must be taken into account early on. Minella Law Group’s attorneys will always place your financial interests as our priority, and we’ll ensure that the tax effects are weighed.
Here’s a blog post we did that answers ten more questions you may be facing as part of your divorce.
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