It's Not Always "50/50"

In California, the community property and the quasi-community and quasi-marital assets and liabilities must be divided equally upon dissolution absent a written agreement or in-court oral stipulation to the contrary. (Family Code Section 2550). This is only part of the story, however. Where economic circumstances warrant, the court may award an asset of the community estate to one party on such conditions as the court deems proper to effect a substantially equal division of the community estate.(Family Code Section 2601). This may be true where the debts outweigh the assets; so called "negative" estates. In these cases, the court may look at the pro rata breakdown of the parties incomes in dividing the debts between the spouses. This results in the higher earning spouse taking on a bigger portion of the "community" debt.

Other exceptions to the "equal division" rule include: Personal injury awards under certain circumstances.(Family Code Section 2603) Some out of state real property; Sums deliberately misappropriated, Property totaling less than $5,000 in value in default cases;in cases where debts were incurred in "anticipation of separation", where one spouse has attempted to murder the other; and where one spouse has been awarded civil damages against the other for domestic violence.

Article Submitted By: Attorney Daniel Gold