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Property Division Archives

Divorce court lacks authority over bankruptcy

California residents who are concerned about how bankruptcy may affect their divorce settlement may be interested to learn of a March bankruptcy court ruling. According to a federal bankruptcy judge, a divorce court does not have the authority to determine which obligations can survive bankruptcy.

When a third-party trust is considered shared property

Since California is a community property state, most assets acquired during marriage are considered marital property to be divided in the case of a divorce. However, there are a few exceptions to this rule, including inheritances. To maintain an inheritance as separate, the beneficiary should not commingle that money with jointly owned assets.

Developing a housing budget after divorce

Emotional issues often drive people's decision to end a marriage, but the divorce process entails many important financial considerations. Once a couple splits, each party must establish a new household with a single income, which could be difficult in many housing markets in California.

Splitting student loan debt after a divorce

Since California is a community property state, debts and assets acquired during a marriage are generally considered shared marital property. This means if that marriage ends in divorce, those debts and assets will in general be equally divided between the two by a judge. This might include student loans.

New California law will impact living together after separation

You hear about it more and more: the idea that a married couple might decide to separate, but remain under the same roof, often so they can easily co-parent and so as not to uproot the children. Sometimes it is to share residential expenses until a divorce is final or because each wants to be the one to stay, thinking they might increase the chance of staying in the residence with the kids after divorce.

Know your finances before divorcing

Not all couples in California share the job of managing the finances. In fact, it is not unusual for there to be a division of labor when it comes to managing the household income. One spouse may handle day-to-day spending, like paying for groceries and utilities, while the other may manage long-term financial accounts and products, such as mortgages, retirement funds, and investments.

Bankruptcy court finds that divorce agreement wasn't alimony

When California couples file for divorce and one party is ordered to or agrees to pay alimony, that obligation is not dischargeable if the payer later files for bankruptcy. It is important to note that not every provision in a divorce settlement will be considered to be alimony, however.

A mortgage can complicate a divorce

When a California married couple purchases a house together, both of their names are usually included on the mortgage. If the couple goes through a divorce before the mortgage is paid off, they could be linked by their mortgage document for many years to come, because altering a mortgage can be difficult.

Costs of divorce can quickly add up

California couples who have been through one know divorces aren't cheap. Not only are the emotional costs high, but so are the financial costs. The average divorce can cost $15,000 to $20,000 in legal and other professional costs alone, and when it is bitterly contested it can cost quite a bit more.