Property Division and Divorce Mediation
Dividing the Property
Under the divorce rules in California, spouses can divide assets by assigning certain items to each spouse, by allowing one spouse to "buy out" the other's share of an asset, or by selling assets and dividing the proceeds. They can also agree to hold property together even after the divorce.
Although continuing to own property together isn't a desirable option for most people, since it requires a continued financial relationship, some couples agree to keep a family home until children are out of school. Others may keep investment property, hoping that it will increase in value.
The couple must also assign all debts accrued during the marriage, including mortgages, car loans, and credit card debts, to one of the spouses. Couples dividing debts should be aware that their separation agreement or divorce order is not binding on creditors, who may continue trying to collect a community debt from either spouse.
If the court assigns a debt to one spouse, the other can ask the court to put a lien on that spouse's separate property as security for payment of the debt. However, it's a better practice to try to pay off all the marital debts when the judge finalizes the divorce—if you're selling the family home or one spouse is buying the other out, there's often a refinancing of the house loan that provides an opportunity to do this.
We understand the ins and outs of property divsion when couples separate. If not done correctly and in a peaceful manner can become a very hot mess that can lead to courts. Once in the courts not only will the fees go above with the need of a lawyer, you'll also be at the discretion of the judge.
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