![]() ![]() This website is intended to provide general information and you should not rely on this website or its contents as a source of legal advice. The contents of this website do not constitute legal advice and do not guarantee or predict the outcome of your specific legal matter. If you or a loved one would like to learn more about how property is valued in a California divorce, get your free consultation with one of our divorce attorneys today! Is the Date of Asset Valuation Important?Ĭalifornia courts understand that asset value changes over time, and the date of separation of a divorcing couple may predate the actual divorce date by a large margin.Ĭalifornia Family Code Section 2552 stipulates that property division and valuation takes place as close to the date of the divorce trial as practicable unless the stipulation of “for good cause” to “accomplish an equal division of the community estate … in an equitable manner” is called into effect. Also vital, is properly distinguishing community from the separate property which may become complicated when there is difficulty proving rights of ownership. Parties must trace their property through financial and property documents such as deeds, receipts, and bank statements. Keep in mind that during divorce, spouses may attempt to claim the separate property as their own. Transmutation: Spouses can agree to legally transmute separate property as community property, or vice versa.Commingling: separate property can become separate property if it’s placed in a joint bank account.Separate property can become community property through commingling or transmutation. Assets or debts conveyed as a spouse’s separate property by the other spouseĬan separate property become community property in California?.Gifts or inheritance received before or during the marriage.Under California Family Code 770, separate property includes but is not limited to: Related: How to Protect Your Assets in a California Divorce What is separate property in California? Present a prenuptial or postnuptial agreement.Prove entitlement of assets using collected financial documents.Related: Dividing Your Business in a California Divorce FAQs About Property Value in a California Divorce How to best protect assets? ![]() A firm grasp of business valuation allows parties to understand exactly how assets are being divided and ensure that everyone is getting their fair share. ![]() There are three main approaches to valuation: asset approach, income approach, and market approach so make sure to pick the approach which best suits your circumstances. A business valuator will produce a business valuation report which estimates the current value and the projected future value of the business or the ownership interest in the business. If a business, or the ownership interest in a business, must be divided, then one or both spouses should hire a business valuator. Often, business valuations are only necessary if a spouse started a small business during the marriage or in the case of jointly owned businesses. Often what a couple paid for a home may not reflect its present market value so spouses should always obtain an appraisal during the divorce process. ![]() Marital homes absorb much income throughout a marriage whether in maintenance, upgrades, mortgage, etc. Two assets should be valued especially carefully in California: Homes and Businesses Valuation of a House Related: Community Property Laws in California Valuation of Property in a California Divorce Understanding Community Property in CaliforniaĬommunity property qualifies as all of the following which partners acquired together during their legal union [including property and assets located outside California:Īll of the above are assets that can be split between spouses as dictated by The Judicial Branch of California in Dividing Property and Debts in a Divorce Document. Dividing marital properties and assets can be tricky and painstaking. Here’s what to know about property value in a California divorce.Ĭalifornia is a community property state meaning unless partners have signed a premarital or postnuptial agreement, they are expected to divide community property 50-50 when divorcing or legally separating. In the absence of a prenuptial agreement or postnuptial agreement, a Californian divorce results in a division of assets and property in half. ![]()
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